Russia Prepares a Plan to Seize Western Assets in Response to EU Sanctions
According to sources close to the Russian government, Moscow has developed a detailed contingency plan to counteract intensified Western measures aimed at freezing and confiscating Russian assets abroad.
In response to potential European Union steps towards the confiscation and nationalization of foreign companies’ assets located in Russia, the Kremlin intends to apply mirrored measures.
Bloomberg reports that the plan involves rapid nationalization of assets owned by foreign firms in Russia, followed by their swift sale.
This approach aims to allow Russia to avoid losses and maintain control over its economic situation while demonstrating readiness for reciprocal actions in case sanctions tighten.
Meanwhile, Russian President Vladimir Putin signed a decree enabling the accelerated sale of state assets under a special procedure, further emphasizing Moscow’s intentions to bolster economic independence and defend against external pressures.
Notably, if the West proceeds with active confiscation of Russian assets, Russia is prepared to respond with symmetrical measures, including potential termination of contracts and nationalization of Western companies operating within Russia, creating additional risks for Western businesses there.
Several foreign corporations, including European and American firms such as UniCredit, Raiffeisen Bank, PepsiCo, and Mondelez, continue to operate in Russia and may face threats if the situation escalates further.
The European Union, however, remains cautious and has not yet adopted radical confiscation measures, although discussions are ongoing.
Recent EU leadership meetings in Denmark have intensified debates over utilizing frozen Russian Central Bank assets to provide Ukraine with loans exceeding 140 billion euros.
It is crucial to note that this mechanism involves not outright confiscation but the return of funds, which Ukraine could use to compensate for war damages once Russia repays.
European Commission President Ursula von der Leyen emphasized that the future reparations mechanism would not involve confiscation of Russian assets and that Kyiv would only receive compensation after Russia makes payments.
As part of efforts to reform Ukraine’s financial support architecture, the EU is considering establishing a reparations loan to help Ukraine access needed resources, while Russia would have the opportunity to reimburse these funds later.
This could become a new instrument of financial support and a clear signal of Europe’s evolving approach to funding and reparations amid ongoing conflict.