Putin takes action against America, orders to seize American assets, Russians will recover compensation for losses

Russian President Vladimir Putin signed an order on Thursday, May 23, allowing the seizure of US assets inside Russia. This seizure will compensate for Russian losses incurred due to US and Western sanctions. Washington and Western countries have seized or blocked more than $300 billion worth of Russian assets since the attack on Ukraine in February 2022. The US Congress passed a bill last month giving President Joe Biden the authority to use Russian assets in the US to aid Ukraine.

In response to the US action, Moscow transferred the assets of many foreign investors to special accounts. These assets cannot be sent out of Russia without the Kremlin’s approval. Thursday’s order will give Russian companies, organizations and individuals affected by the sanctions the right to apply for compensation from the Russian government. The Commission has been instructed to determine how Russian holders can demand the seizure of US assets as compensation for assets frozen in the US.

Compensation will be given from companies

This compensation will be given in the form of US-owned assets located in Russia, such as real estate, companies, bank accounts or shares. Many Western companies have left Russia since the Russian attack on Ukraine. Companies that remain, or have not finalized the sale of their businesses in Russia, may be at risk of having their assets seized.

Russia has seized several Western companies

Moscow and Western countries have accused each other of seizing assets. In the past two years, Russia has taken several Western-owned companies under temporary government control. Moscow has threatened to seize the assets in Russia of countries it considers helping Ukraine. Last year, Putin gave the green light to the temporary state takeover of the Russian division of the giant German energy company Uniper and Finland’s Fortum.