Russia is poised to expand its powers to retaliate for the seizure of its assets by the West with new legislation that could allow it to confiscate frozen funds of foreign companies and investors, two sources familiar with the draft law told "Reuters".
About $300 Billion in Russian Financial Assets, in the Form of Major Currencies and Government Bonds, Were Frozen Abroad Shortly After Moscow Sent Troops into Ukraine in February 2022 Western countries have been discussing how best to use these assets.
A draft law outlining the procedure for Russia to seize foreign property in response to similar actions by other countries with Russian assets was approved by the government's legislative committee this week, paving the way for its discussion in the State Duma, the lower house of the Russian parliament.
The draft law, developed by the Justice Ministry, is a follow-up to a decree signed by President Vladimir Putin in May 2024. on U.S. property and securities that Russia can claim as compensation for any losses suffered from the seizure of frozen Russian assets in the United States.
The new law will expand the scope to all so-called "hostile states" that have imposed sanctions on Russia over its actions in Ukraine, the sources said.
The rulings will be enforced through lawsuits filed in arbitration courts by state bodies, such as the Central Bank, the Prosecutor General's Office and state agencies. Defendants would include foreign countries that have seized Russian assets.
A source familiar with the discussions surrounding the bill said that Type C accounts, access to which is blocked unless Moscow grants an exemption, could be targeted.
This could create problems for many foreign investors, including individuals and large U.S. investment funds, with billions of dollars of funds blocked in these accounts.
In May last year, it was reported that Russia could go after the money of private investors, as its ability to impose such retaliatory measures has been undermined by declining foreign investment.