MOSCOW: Russian President Vladimir Putin on Thursday signed a decree permitting the confiscation of assets belonging to the United States, its citizens, and companies within Russia, to compensate those hit by Western sanctions against Moscow.
The move comes in response to Western measures freezing approximately $300 billion of Russian financial assets, primarily central bank reserves, following Russia’s military intervention in Ukraine in February 2022. In a tit-for-tat response, the US Congress recently passed legislation empowering President Joe Biden to utilize frozen Russian assets within the United States to establish a special fund in support of Ukraine.
Under the Russian decree, companies, organizations, and individuals impacted by sanctions will have the right to seek compensation from the Russian government. This compensation will be sourced from US-owned assets situated in Russia, including real estate, companies, bank accounts, or shares.
The announcement heightens the risk for Western businesses operating in Russia, many of which have already withdrawn operations since the onset of the conflict in Ukraine. Remaining companies, as well as those in the process of divesting their Russian assets, now face potential asset seizure.
Tensions between Russia and Western nations have intensified as accusations fly regarding the appropriation of each other’s property amid the asset freezes. Russia has previously taken control of Western-owned businesses under the guise of “temporary” state control, a move condemned by Western leaders and corporations as tantamount to nationalization.
Pressure is mounting in Europe over the utilization of frozen Russian assets to support Ukraine, with calls for more decisive action. US Treasury Secretary Janet Yellen urged the G7 to adopt a more proactive stance in leveraging these funds to aid Kyiv, underscoring the urgency of the situation and the need for collective action.
