Russia Develops Strategy for Asset Seizures in Response to EU Actions
Russia could nationalise and rapidly sell off foreign-owned assets as a countermeasure if the European Union moves to seize Russian holdings abroad. According to a source close to the government, a new presidential decree establishes the legal framework for this retaliatory action.
On Tuesday, President Vladimir Putin signed an order creating an expedited privatisation process. This new mechanism is specifically designed as a response to international sanctions and could be applied to both Russian and foreign-owned businesses. The Kremlin has openly warned of a “response” to any seizure of its assets, with spokesman Dmitry Peskov calling the EU’s proposal an “illegal seizure” and “theft”.
The decree outlines a special procedure to accelerate the sale of assets owned by foreigners after their nationalization.
Key features of this new process include:
The move comes as EU leaders build support for a plan to provide Ukraine with €140 billion ($164 billion) in loans, using profits generated from immobilised Russian central bank assets. The initiative, gaining traction ahead of a formal summit later this month, follows Washington’s withdrawal of direct financial assistance to Kyiv under President Donald Trump, leaving Europe to bear a greater share of the burden.
The EU’s plan reportedly stops short of outright seizing the assets, which would theoretically be returned to Moscow if it agrees to pay reparations for the war damage in Ukraine. Despite this, Russia views the action as a hostile step. Hundreds of Western corporations, including major players like PepsiCo Inc., UniCredit SpA, and Raiffeisen Bank International AG, continue to operate in Russia. Although Russia has so far avoided outright nationalisation of such companies, it has already taken some under temporary management before arranging discounted sales to favoured buyers.
The new mechanism could also apply to properties formerly held by Russian nationals. The Kremlin has intensified confiscations targeting Russian citizens, including dual nationals and individuals facing extremism or corruption allegations. These seized properties are frequently resold to generate state revenue.
The value of assets seized by Russia since the February 2022 is estimated at 3.9 trillion roubles ($48 billion) as of June.
Putin has previously cautioned that Western moves to seize Russia’s frozen reserves could destabilise the global financial system. The latest decree underscores Moscow’s readiness to retaliate should the EU follow through with its plans.