Russia set to widen powers to seize foreign assets, reports Reuters
Pravda Ukraine
Russia intends to expand its authority to confiscate frozen funds belonging to foreign companies and investors.
Source: Reuters, citing its sources
Details: This week, the Russian government’s legislative committee approved a draft law outlining the procedure for confiscating foreign property in retaliation for “similar actions” by other countries towards Russian assets.
The bill, drafted by Russia’s Ministry of Justice, follows a decree signed by Kremlin ruler Vladimir Putin in May 2024 concerning US property and securities, which Russia may use to compensate for losses caused by the seizure of frozen Russian assets in the United States.
Reuters sources noted that the new law will cover 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 Russian state authorities (the central bank, the Prosecutor General’s Office and government agencies). Foreign states that have seized Russian assets will act as defendants.
A source familiar with the discussions surrounding the bill suggested that the new law may target type-C accounts, which are currently blocked unless Moscow grants a waiver.
This could pose challenges for many foreign investors, including both individuals and large US investment funds, with billions of dollars frozen in their accounts.
Background: US President Donald Trump is ready to double down on sanctions to compel Russia to end its war against Ukraine, his special envoy for Ukraine and Russia, Keith Kellogg, has said.
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