Russian President Vladimir Putin has signed a decree that would allow Russia to claim U.S. asset in the country in retaliation for any Russian assets confiscated in the U.S.
The decree containing the corresponding provision was published on the government portal, which instructed the country’s government to establish a special procedure for compensating the damage caused to Russia and its central bank by the US government or judicial decisions.
“The government of the Russian Federation, within a four-month period, ensures the introduction of changes to the legislation of the Russian Federation aimed at implementing this decree,” the document said.
The decree signed by Putin says that Russian companies and the central bank and individuals could apply to Russian courts to declare the seizure of property in the U.S. as unjustified.
If the court agrees, a government commission would offer assets in compensation that could include property owned by U.S. citizens or companies in Russia, securities and shares in Russian companies.
Ukraine and many of its supporters have called for the confiscation of $260 billion in Russian assets frozen outside the country after Russia’s Feb. 24, 2022, invasion.
European officials have resisted, citing legal and financial stability concerns.
However, U.S. President Joe Biden in April signed into law the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act, which allows the administration to seize the roughly $5 billion in Russian state assets located in the U.S.
The law was included in a U.S. aid package for Ukraine and other nations which includes roughly $61 billion for Ukraine’s defense.
However, it’s not likely the U.S. will seize the assets without agreement from other members of the Group of Seven nations and the European Union.
Separately, Russian Foreign Ministry Spokesperson, Maria Zakharova said that the EU will feel the “full measure” of Russian retaliation over its plan to use income from frozen Russian assets to help Ukraine.
EU countries have formally adopted a plan to use windfall profits from Russian central bank assets frozen in the EU for Ukraine’s defence, the Belgian government said on Tuesday.
Russia says such action is illegal and undermines the foundations of the global financial system.
Germany Opposes Use Of Russian Assets For Ukraine
Meanwhile, cabinet spokesman Steffen Hebestreit asserted that the German government still opposes confiscation of the blocked Russian assets to aid Ukraine.
“Our position remains the same: we are talking about the revenue from the frozen assets. We are not talking about the assets themselves,” he said.
Meanwhile, the spokeswoman of the Ministry of Finance underscored that “the asset fund of the Central Bank of Russia remains untouched.”
“Thus, we comply with the fundamental international legal principles, such as state immunity. This is the current position,” she noted.
The EU, Canada, the US and Japan blocked about $300 billion worth of Russian assets after the beginning of the special military operation. Of those, about $5-6 billion are in the United States.
Previously, the US Congress passed a package of bills on military aid for Israel, Ukraine and Taiwan, on confiscation of frozen Russian assets for their de facto handover to Kiev, and on imposition of additional sanctions against China.
According to the EU statement, central banks of the member states will have to start transferring revenue from the frozen Russian assets.
Withdrawals will take place twice a year and will be forwarded for military support to Ukraine.
European Commission President, Ursula von der Leyen said that she hopes to transfer up to 1 billion euros of such funds by July.
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