Russia intends to respond to the seizure of its Western assets by developing new legislation that could allow the confiscation of frozen funds of foreign companies and investors: this week, the government's legislative committee approved the relevant bill, UNN reports with reference to Reuters.
Details
About $300 billion in Russian financial assets, such as major currencies and government bonds, were frozen abroad shortly after Moscow sent troops into Ukraine in February 2022. Western countries are discussing how best to utilize these assets.
The bill, drafted by the Russian Ministry of Justice, is a continuation of a decree signed by Russian dictator Vladimir Putin in May 2024 regarding American property and securities that Russia may identify as compensation for any losses incurred as a result of the seizure of frozen Russian assets in the United States.
The new Russian law will apply to all so-called unfriendly states that have imposed sanctions on Russia over its actions in Ukraine.
The decisions will be enforced through lawsuits filed with the arbitration court by state authorities, such as the central bank, the Prosecutor General's Office and government agencies. The defendants will be foreign states that have seized Russian assets.
This could cause problems for many foreign investors, both individuals and large American investment funds with billions of dollars in their accounts.
Recall
In December 2024, Ukraine received the first tranche of $1 billion from the frozen Russian assets from the United States . This was part of a G7 initiative totaling $20 billion that the United States was planning to allocate.
In October 2024, the European Council announced that Russian assets will remain frozen until the aggression against Ukraine ends and damages are paid.