Russia-West Standoff Intensifies: Asset Seizure Talks Spur Retaliatory Threats

In response to potential Western plans to confiscate its frozen assets to aid Ukraine, Russia has issued a stern warning of retaliatory measures.

What Happened: Business Insider reported that the Russian state RIA news agency cautioned on Sunday that if the West seizes Moscow’s frozen assets to support Ukraine, Russia will respond in kind.

The warning comes amid the Group of Seven (G7) discussions on legally confiscating $300 billion in Russian central bank assets to fund Ukraine’s reconstruction. According to RIA, citing Western countries’ national statistics, the European Union, G7 nations, Australia, and Switzerland collectively held $288 billion in direct investments in Russia’s economy by the end of 2022.

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Russia’s potential retaliatory seizure of assets could further complicate the exit of foreign companies from the Russian market. The Kremlin is already closely monitoring and managing almost every corporate exit plan before approving it.

Why It Matters: The potential seizure of Russian assets to aid Ukraine has been a topic of international debate. Former World Bank President Robert Zoellick suggested transferring Russia’s frozen foreign reserves, totaling over $300 billion, to Ukraine to aid the war-torn country. Zoellick argued that this would send a clear message to Russia that its aggression against Ukraine will not be tolerated.

Treasury Secretary Larry Summers suggested that the U.S., European countries, and their allies should launch a non-violent counteroffensive against Russian aggression centered on economic and political reconstruction.

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