Russia threatens the US with asset confiscation

The above stern warning was issued by Russian Deputy Foreign Minister Sergey Ryabkov on April 25, according to RIA Novosti.

The United States and its Western allies have frozen about $300 billion in Russian central bank assets as part of sanctions related to the special military operation in Ukraine. Most of these assets are held in Europe.

Washington has long advocated confiscating Russia’s frozen funds to transfer to Kiev to rebuild the country.

The latest move took place on April 20 with the US House of Representatives passing a bill allowing the confiscation of frozen Russian assets.

RIA Novosti Quoting Deputy Minister Ryabkov, Moscow’s response to the confiscation of Russian assets by G7 countries may include economic and diplomatic countermeasures.

The senior Russian diplomat previously warned that the US should not “have the illusion that Moscow is clinging to diplomatic relations with Washington with both hands”.

Russian Foreign Ministry spokeswoman Maria Zakharova also accused the US of trying to create a “legal cover” to steal Russia’s sovereign assets.

Russian Senate President Valentina Matviyenko announced on April 23 that Moscow had drafted a law to respond if $300 billion of its assets were confiscated by the West and used to rebuild Ukraine.

“We have prepared a response. We have prepared a draft law ready for immediate consideration of retaliatory measures. Europe will lose more than us” – Reuters quoted Ms. Matviyenko.

Top US officials want to confiscate Russian assets to help rebuild Ukraine. Meanwhile, some European bankers and officials worry that asset seizures would set a dangerous precedent.

The Kremlin has repeatedly stated that any action to confiscate assets goes against all the principles of the free market set forth by the West. This will also reduce confidence in the dollar as well as the euro, while hindering global investment and weakening confidence in Western central banks.

Russia announced it would sue any confiscation of its assets in court.

Some Moscow officials say that if Russian assets are confiscated, they will respond similarly to the assets of foreign investors trapped in special accounts – known as “C” categories. – in Russia. It is unclear exactly how much money is in these accounts.

Chairman of the Russian House of Representatives Vyacheslav Volodin said on April 22 that Moscow has grounds to confiscate Western assets after the move of the US House of Representatives. He criticized this behavior as “stealing” Russian assets.