''HOT'' Mr. Putin signed a decree allowing the confiscation of American assets
Russian President Vladimir Putin signed a decree allowing the country to take US assets, including securities, to compensate for assets frozen and confiscated by the US.
The decree signed by Mr. Putin on May 23 is Russia's response to the blockade and confiscation of assets by the West.
Over the past several weeks, G7 countries have discussed the use of about 300 billion in Russian assets, including money and government bonds, frozen after the outbreak of hostilities in Ukraine from February 2022.
Officials and economists told Reuters that Russia's ability to retaliate has been reduced by low foreign investment, and Moscow may instead target the cash of private investors. .
Russia took property as compensation for property
The latest decree announced by Putin states that a Russian entity can request a Russian court to determine whether its assets were unjustly confiscated and request compensation. The court will then order the compensation to be transferred in the form of US assets or assets in Russia from a list drawn up by the Russian government commission on the sale of foreign assets.
The order lists US-owned assets subject to confiscation including securities, shares in Russian companies, real estate, movable property and property rights. Last month, former president Dmitry Medvedev admitted that the amount of US assets Russia holds is insignificant, and any Russian response would be disproportionate. He believes that it is necessary to focus on the assets of individuals.
The assets of many foreign investors, including individuals and large US investment funds, are held in special "C-type" accounts that Russia launched shortly after hostilities with Ukraine and Moscow is subject to a series of Western sanctions.
Money in those accounts cannot be transferred out of Russia without the permission of the country's government.
Previously, Washington passed a law allowing President Joe Biden's administration to confiscate frozen Russian assets in US banks and transfer them to Ukraine. Moscow criticized this as illegal.
Russia threatened to retaliate against the EU
Also on May 23, the Russian Foreign Ministry warned that the country would retaliate strongly against the European Union's plan to take Russia's frozen assets to help Ukraine.
Russian assets deposited in Switzerland amounted to 165 billion USD, frozen at only 14.5 billion USD
Europe proposes to transfer profits from Russian assets to Ukraine, Russia threatens to 'retaliate'
"We are talking about another attempt to legalize theft at the national level," said Russian Foreign Ministry spokeswoman Maria Zakharova.
Russia believes such actions are illegal and undermine the foundations of the global financial system.
This week, the Belgian government said EU countries had officially approved a plan to use windfall profits from frozen Russian Central Bank assets in the EU to protect Ukraine.
Meanwhile, US Treasury Secretary Janet Yellen said that Russian assets are a potential source of support for Ukraine until 2025 or more. The US hopes this asset can help provide Ukraine with up to 50 billion USD in the near future.
