Russia threatened to downgrade relations with Canada if its assets were confiscated

“I don’t want to predict from now on what steps the Canadian side will take. We have outlined retaliatory measures for any situation. Western countries, including Canada, should think carefully about whether confiscation is in their interest or not,” Russian Ambassador to Canada Oleg Stepanov stated on April 26, referring to the consequences of Canada’s confiscation of Russian assets.

Ambassador Stepanov said that it cannot be ruled out that diplomatic relations with Ottawa could be downgraded after Canada confiscated Russian assets, according to the news agency. Tass.

“Regarding the nature and level of future diplomatic relations, nothing can be ruled out. All options are on the table, but in this context, we will consider our stance and Russia’s interests,” the Russian diplomat emphasized.

Previously, Russian Deputy Foreign Minister Sergey Ryabkov warned on April 25 that Russia could respond economically and politically if the US and the West confiscated Russian assets.

“Of course, lowering the level of diplomatic relations is one of the options. Many high-ranking representatives in our government have proposed economic and financial response measures against the West. “, Mr. Ryabkov said.

The Russian diplomat added: “We are considering appropriate countermeasures against the assets of Western opponents as well as diplomatic countermeasures.”

He did not specify what lowering the level of diplomatic relations might lead to. Previously, the Kremlin said that relations between Russia and the US were now at a low level below zero even though there had been no official downgrading of relations since the Ukraine conflict broke out.

The US and its allies have frozen about $300 billion in Russian central bank assets as part of sanctions against Moscow launching a special military campaign in Ukraine. Most of these assets are held in the European Union (EU).

Washington has long advocated confiscating Russian assets to support Ukraine in dealing with Russia and rebuilding the country. The US House of Representatives has passed a bill allowing the confiscation of frozen Russian assets.

This bill allows the US President to confiscate Russian assets held in US banks and transfer them to Ukraine. More than $6 billion of Russia’s $300 billion in frozen assets is in US banks.

US Senator Rand Paul, who is skeptical of the proposal, warned earlier this year that the move would be “an act of economic warfare”.

Officials in several Western countries, notably the United States and Britain, have insisted on a complete seizure of Russian assets despite concerns that this would face legal challenges.

Meanwhile, the European Union is reluctant to do so out of fear of Russian retaliation. EU countries, which hold the majority of the frozen funds, are said to fear that confiscating Russian assets would destabilize the euro.

The Kremlin warned that Moscow already has a list of US and European assets to confiscate in case the West decides to confiscate Russian assets.