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Russia Threatens Swift Sale of Foreign Assets Over EU Plan to Use Frozen Funds
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In response to potential European Union actions to seize Russian assets, Russian leader Vladimir Putin has signed a decree to expedite the sale of state-owned assets, including those of foreign companies operating in Russia, Bloomberg reported on October 2.
Hundreds of Western companies, ranging from banking to consumer goods, continue to operate in Russia, including UniCredit SpA, Raiffeisen Bank International AG, PepsiCo Inc., and Mondelez International Inc.
The decree is designed to speed up the privatization process and could involve both Russian and international assets.
The move follows growing EU support for a plan to use $164 billion in frozen Russian central bank assets to help Ukraine. Should the EU move forward with its asset seizure proposal, Moscow is preparing to retaliate with similar measures, including the rapid sale of affected assets.
The new procedure limits asset evaluations to 10 days and accelerates registration processes. State-owned Promsvyazbank will oversee the sales.
Although Russia has not yet nationalized foreign-owned assets, it has temporarily taken control of certain companies and plans to sell them at steep discounts. This decree shows Russia’s broader efforts to counter Western sanctions and seize assets linked to individuals under scrutiny.
Previously, it was reported that approximately 62% of western companies with significant assets in Russia have exited the Russian market since the beginning of the full-scale invasion of Ukraine in 2022, according to a new analysis by the Russian consulting firm Kept.
