Russia prepares plan to seize European assets if EU makes decision on frozen Russian funds
Russia may nationalize and quickly sell off foreign assets under a new privatization mechanism in response to any steps by Europe to seize Russian assets abroad, Bloomberg reports, citing a source close to the government.
"President Vladimir Putin on Tuesday signed an order allowing for fast-track sales of state-owned assets under a special procedure. The decree is intended to speed up the sale of various companies, both Russian and foreign, the person familiar with the matter said, asking not to be identified because the information isn’t public. Should the European Union begin seizing Russian assets, Moscow may respond with symmetrical measures, the person said," the report notes.
Hundreds of western companies working in sectors from banking to consumer goods still operate in Russia, including UniCredit SpA, Raiffeisen Bank International AG, PepsiCo Inc, and Mondelez International Inc.
Putin acted as EU leaders meeting in Denmark build momentum for a plan to provide Ukraine with EUR 140 billion ($164 billion) in loans from immobilized Russian central bank assets, ahead of a formal summit at the end of this month. The long-standing proposal to leverage the assets has gained traction after the US under President Donald Trump halted its direct support for Ukraine, leaving Europe to shoulder the burden of aiding the war-battered nation in its defense against Russia’s invasion.
The Russian decree limits pre-sale valuations to 10 days and speeds up state registration of ownership, according to the document published on the government’s website. State-owned Promsvyazbank was appointed to handle such deals, and Putin’s order emphasized that the changes were a response to sanctions against Russia.
The new decree could also be used to sell off assets once owned by Russian investors. The Kremlin has stepped up seizures targeting Russian citizens including those with foreign passports or who’ve been accused of extremism or corruption.