Danger for companies

Revenge for sanctions: Putin takes US assets

The move is seen as retaliation for Western measures.

(Bild: AP ( via APA) Austria Presse Agentur/Yury Kochetkov)

In response to the sanctions imposed by the West, Russian President Vladimir Putin issued a decree on Thursday authorizing the seizure of US assets in Russia. According to the decree published on an official website, the seizure may affect US assets such as real estate, companies, bank accounts or shares.

Russian companies, organizations and individuals affected by Western punitive measures are to receive these as compensation for their assets seized in the USA. The move was justified with "hostile actions by the United States in violation of international law", which were aimed at "harming Russia and the Russian Central Bank".

Western companies still active
Many Western companies have left Russia since the start of the offensive in Ukraine in February 2022. However, others are still active there and could now be affected by the new regulation.

Since the start of the Russian offensive two years ago, the EU and G7 countries have frozen assets of the Russian central bank to the tune of around 300 billion euros, according to EU figures. Both in the USA and in Europe, there are increasing calls for the establishment of a fund for Ukraine. Most recently, the US Congress passed a corresponding bill last month.

Western companies expropriated
Russia, for its part, has brought a number of Western companies under "temporary" state control over the past two years. Western politicians and companies have condemned the move as "nationalization".