Russia Plans Nationalization of Foreign Assets Amid EU Seizure Threats

The G7 countries are exploring measures to support Ukraine financially by potentially using frozen Russian assets, aiming to strengthen Ukraine's resilience and weaken Russia's military capabilities in accordance with legal norms. In response, Russia, under President Vladimir Putin, has enacted a decree allowing for the rapid nationalization and sale of foreign and state-owned assets as a countermeasure to any European Union moves to confiscate Russian assets abroad. Kremlin spokesman Dmitry Peskov warned that any attempts to seize Russian assets would lead to accountability for both individuals and countries involved, emphasizing that such actions would not go unanswered. The EU and G7 have frozen approximately $300 billion in Russian sovereign reserves, with some proceeds already allocated to Ukraine, while Russia has imposed reciprocal restrictions on foreign investors' assets. This escalating financial standoff coincides with the EU's plans to provide substantial loans to Ukraine using immobilized Russian central bank assets, following a reduction in U.S. support. Hundreds of Western companies, including UniCredit and PepsiCo, continue to operate in Russia despite sanctions, highlighting the complex economic interplay amid the ongoing conflict.