Moscow Responds to Europe: Russia Prepares Large-Scale Measures Against Asset Freezes and Sanctions
Tensions between the Kremlin and the European Union continue to escalate amid new economic and political challenges.
The focus today is on the European leaders’ plans to extend a $165 billion loan to Ukraine, financed through frozen Russian assets.
However, Moscow perceives this move as a personal insult and is preparing a more severe response.
In reply, Russian authorities have launched a large-scale campaign to nationalize and privatize foreign assets owned by international companies operating within Russia.
This could lead to foreign businesses losing their investments and assets being confiscated or sold at significant discounts.
According to Bloomberg, on September 30th, President Vladimir Putin signed a decree enabling the accelerated sale of state assets through a special procedure.
This decree aims to facilitate the quick sale of various enterprises, including both Russian and foreign companies, under preferential conditions.
Meanwhile, the G7 countries have announced their readiness to impose sanctions on those purchasing Russian oil or helping bypass existing restrictions.
Russia has long avoided nationalizing assets of Western corporations, instead management has been temporarily overseeing certain companies before organizing their sale to the highest bidders at reduced prices.
Currently, Russia is transferring earnings from Western companies into special accounts from which fund withdrawals require government approval.
This increases state control over foreign investments in the country.
Additionally, Austrian bank Raiffeisen Bank International has once again failed to sell its stake in the Russian business, highlighting the ongoing difficulties faced by foreign investors amid tightening sanctions.