Russian authorities are drafting a new bill that would allow the confiscation of assets belonging to Western countries that have illegally seized Russian assets and funds, the Izvestia newspaper reported on January 21, citing documents from the government’s legal committee.
The bill proposes a detailed legal process, emphasizing that targeted foreign assets will be transferred to Russian state ownership after an arbitration court ruling. The list of assets and funds to be seized will be drawn up by Russia's foreign investment committee.
In May, Russian President Vladimir Putin signed a decree laying the groundwork for the seizure of assets of US companies and individuals to compensate for Russian assets seized by Washington.
If passed, the bill would target “unfriendly” Western countries and individuals involved, allowing Moscow to seize assets as compensation for financial losses Russia has suffered as a result of the illegal seizure of its assets. The committee will consider the bill as early as next week.
According to Vedomosti, the bill was drafted by the Russian Ministry of Justice and was included in the committee's agenda on January 20. Izvestia noted that the document has been approved by relevant agencies, including the Central Bank of Russia, the Ministry of Finance, the Ministry of Economy and the Ministry of Foreign Affairs.
Since 2022, Washington and its allies have frozen about $300 billion in Russian state assets at Euroclear, a Brussels-based financial institution, amid the escalating conflict in Ukraine. Kiev has repeatedly called on the West to seize Russian assets to use for weapons purchases and reconstruction.
The administration of US President Joe Biden supports this proposal, but many European countries have opposed it due to concerns about its legality and negative impact on the Western financial system.
Some Western allies have proposed imposing a windfall tax on frozen Russian assets to use the money to buy weapons for Ukraine or as collateral for military loans.
The Kremlin has repeatedly condemned the freezing of assets as “theft” and warned that using such funds would be illegal and set a dangerous precedent. Kremlin spokesman Dmitry Peskov stressed that Moscow would file a lawsuit against any party involved in the seizure of Russian assets.
