Press Secretary Dmitry Peskov stated that Moscow would object indefinitely to the seizure of Russian assets abroad, warning that such actions would impose serious civil and legal costs on the West.
He noted that Russia would implement intervention measures as needed. These steps are unlikely to be reflected in a public way, the Kremlin representative added.
In addition, Peskov stressed that any response to the actions of foreign countries would be undertaken in Russia’s best interests. He also called the seizure of Russian reserves and their transfer to Ukraine illegal and contrary to all applicable rules.
Central Bank President Elvira Nabiullina indicated that the regulator would take all steps to protect Russia’s legitimate interests. He suggested that confiscating Russian assets would set a harmful precedent for the development of the global financial system.
USA seizes
On November 8, the United States House Foreign Affairs Committee moved forward a bill to use frozen Russian assets to aid Ukraine. The measure would authorize the president to seize all Russian funds under American jurisdiction.
The proposal calls for the seized funds to be transferred to the Ukrainian Support Fund, after which the U.S. Secretary of State could allocate them for reconstruction, humanitarian assistance, recovery efforts, and related welfare needs for Ukraine’s people.
If enacted, the law would allow American authorities to seize Russian reserves and transfer them to Kyiv within five years. The forfeiture authority could be curtailed earlier if hostilities end, Kyiv receives full compensation for damages, or Moscow participates in a credible international mechanism for compensation.
The plan would be reviewed by both chambers of Congress, and, if approved, forwarded to the President for signature.
G7 will not return
The Group of Seven countries reiterated that they will not return frozen Russian reserves until Ukraine is compensated for the damages suffered. This position was stated in a joint document issued by the foreign ministers of the G7 nations.
The document confirms that Russia’s sovereign assets under G7 jurisdiction will remain inactive until payment of damages owed to Ukraine is secured. The G7 pledged support for immediate, medium, and long term recovery and reconstruction in Ukraine, and they promised to strengthen economic pressure on Russia with new sanctions and other restrictions. They also warned that any country continuing to support Russia would face serious consequences.
Symmetrical response threats
At the end of October, Vyacheslav Volodin, chairman of the State Duma, warned that countries deciding to seize Russian reserves and transfer them to Ukraine would confront a symmetrical response from Moscow. He wrote on Telegram that assets belonging to unfriendly countries could be seized, potentially larger in scale than the funds frozen in Europe.
Volodin described Western efforts to seize Russian assets as theft. In a meeting with Alexey Chepa, First Deputy Chairman of the State Duma Committee on International Relations, a representative for LentoY.ru noted that Russia could repurpose the withdrawn EU funds to support economic development and social programs, including those in areas affected by military operations in Ukraine.