Kremlin Warns Against Seizure Of Assets In West

Wires carrying comments from Kremlin spox Dmitri Peskov. States that 'Any Western move to seize Russian assets abroad would deal a serious blow to the international financial system.' In the event of such a seizure, 'Russia would defend its rights through the courts and by other means...Russia would never leave those responsible for such an asset seizure in peace.' Kremlin says it, 'Would look to see what Western assets Russia could seize in retaliation.'

• The seizure of Russian assets parked in the West, worth around USD300bn and primarily the reserves of the Russian central bank, and using them in the reconstruction of Ukraine has been a clarion call for many politicians in the West since the war started.
• However, the issue remains fraught with legal obstacles. Foreign Policy highlightsthe myriad issues, including: the fact that asset seizure is not a sanction (a measure intended to force a change in behaviour that can then be lifted) but a permanent punitive step, the move would require the cooperation of Euroclear that in turn would risk financial fragmentation if Western financial channels are no longer seen as apolitical, and the seizure of Russian assets could set a dangerous precedent in other conflicts or even just between geostrategic rivals.
• Earlier in the week President Vladimir Putin signed a decree ordering two European firms bestripped of their stakes in Russian gas extraction projects. The Kremlin argues that this does not amount to a seizure, as the firms will be compensated.