President Vladimir Putin has signed a decree authorizing Russia to seize the assets of U.S. companies and individuals in retaliation for the seizure of Russian assets in the United States.
The decree was published on the Russian government’s legal portal on Thursday, coinciding with a meeting of top finance officials from the Group of Seven (G7) industrialized nations.
These officials are discussing the fate of Russian assets frozen in Western countries.
After Russia’s invasion of Ukraine on February 24, 2022, Ukraine and its allies sought to access $260 billion from Russia’s frozen assets abroad. However, European leaders encountered legal and financial obstacles in agreeing to this.
In April, President Joe Biden signed into law the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act, allowing the U.S. government to seize approximately $5 billion of Russia’s assets in America as part of a financial aid package for Ukraine totaling around $61 billion for defense.
Despite this legislation, it is unlikely that the U.S. will seize Russia’s assets without the agreement of other influential countries like those in the G7 and the European Union.
President Putin’s decree establishes a new provision. Under this decree, Russian businesses, banks, and individuals can petition Russian courts to contest the unfair seizure of their assets in the U.S. If the court rules in their favor, a government entity will provide compensation using other assets, potentially including properties or company shares owned by Americans in Russia.
