Russia’s senior security official, Dmitry Medvedev, has made it clear that if the U.S. proceeds with confiscating its frozen currency reserves in the West, Russia will retaliate by seizing the assets of U.S. citizens and investors within its borders. This tit-for-tat escalation comes in response to a bill passed by the U.S. House of Representatives that allows the Biden administration to confiscate Russian assets held in American banks and transfer them to Ukraine. The Kremlin has deemed such actions illegal and has warned of retaliation.
Medvedev emphasized that since Russia does not hold a significant amount of American state property, any retaliation would have to be asymmetrical in nature. This asymmetrical response would involve seizing the property, including money, real estate, and other assets, of private individuals within Russia who are U.S. citizens or investors. Despite the guarantee of property rights, the Russian government views these individuals as complicit in the hybrid war declared by the U.S. and therefore subject to asset seizures.
Medvedev acknowledged that current Russian laws would need to be modified to allow for the seizure of assets belonging to U.S. citizens within the country. This change would empower the Russian state to foreclose on the property of private individuals as a form of retaliation. While the legal implications of such actions are complex, Medvedev emphasized the necessity of responding to what Russia perceives as aggression from the U.S.
Elvira Nabiullina, the governor of the Russian Central Bank, stated that Moscow would defend its legitimate interests in the event of asset confiscation by the U.S. However, the specific strategy and tactics that Russia would employ in this scenario were not disclosed. The uncertainty surrounding Russia’s potential response adds another layer of complexity to the already tense situation.
The escalating tensions between Russia and the U.S. over the potential confiscation of Russian assets highlight the volatile nature of international relations. The threat of asset seizures on both sides underscores the high stakes involved and the far-reaching consequences of such actions. As the situation continues to unfold, the world watches closely to see how both nations will navigate this precarious diplomatic standoff.