In another round of economic tensions escalation, Russian President Vladimir Putin signed a decree on Thursday, May 23, permitting the confiscation of assets within Russia belonging to the United States, its citizens, and companies.
This move is intended to compensate those affected by Western sanctions against Moscow.
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Following Russia’s invasion of Ukraine in February 2022, the West froze approximately $300 billion in Russian financial assets, primarily from its central bank reserves.
Recently, the US Congress approved legislation enabling President Joe Biden to allocate frozen Russian assets in the United States to a special fund aimed at supporting Ukraine.
Putin's decree will allow Russian entities impacted by sanctions to seek compensation from the government. This compensation could include US-owned properties, companies, bank accounts, or shares located in Russia.
Since the onset of the war, numerous Western companies have exited Russia. Those that remain or are in the process of divesting their Russian operations now face the threat of asset seizure.
Both Russia and Western nations have accused each other of asset appropriation amid these economic hostilities. Over the past two years, Russia has placed several Western-owned businesses under "temporary" state control, actions condemned by Western governments and firms as acts of "nationalisation."
In Europe, where most of the frozen Russian assets are held, there is growing debate on utilizing these resources to aid Ukraine. On Thursday, May 23, US Treasury Secretary Janet Yellen urged the G7 to adopt a more "ambitious" approach to deploying these funds in support of Kyiv.
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