Russia passes decree to allow seizure of U.S. assets

Russian President Vladimir Putin on May 23 signed a decree allowing the confiscation of assets inside Russia belonging to the United States, its citizens and companies, to compensate those hit by Western sanctions against Moscow.

Russian President Vladimir Putin on May 23 signed a decree allowing the confiscation of assets inside Russia belonging to the United States, its citizens and companies, to compensate those hit by Western sanctions against Moscow.

The West froze around $300 billion of Russian financial assets, mostly its central bank reserves, after Moscow ordered troops into Ukraine in February 2022.

And the U.S. Congress last month passed a bill that would allow President Joe Biden to use frozen Russian assets in the United States for a special fund to support Ukraine.

The Russian decree will give Russian companies, organisations and individuals that have been hit by sanctions the right to apply for compensation from the Russian government.

The compensation would come in the form of US-owned assets - such as real estate, companies, bank accounts or shares - based in Russia.

Many Western companies have left Russia since it launched its offensive on Ukraine.

Those that remain - or have yet to finalise sales of their Russian businesses - could now be at risk of having their assets seized.