Ukraine war: Russia has ‘significant’ Western resources to respond to asset seizure loan plan

There are “significant amounts” of Western assets and real estate on Russian territory that could become the target of retaliatory strikes by Moscow if the West confiscates proceeds from Russian assets, Russian Foreign Ministry spokeswoman Maria Zakharova said on Wednesday.

The heads of state and government of the Group of Seven (G7) agreed at a summit in Italy last week to use interest from Russian assets frozen in the West to provide Ukraine with a $50 billion loan.

Russia says the move is illegal and will backfire on the West because it undermines confidence in the global financial system.

“Our country has significant amounts of Western funds and assets under Russian jurisdiction. All of this could be subject to Russian retaliatory policies and actions,” Zakharova told reporters.

“Of course, no one will reveal to you the nature of these retaliatory measures. But the arsenal of political and economic countermeasures is broad.”

Economists, lawyers and experts say one of Russia’s most likely actions would be to seize the assets and securities of foreign investors currently held in special “Type C” accounts. Access to these accounts has been blocked since the start of the war unless Moscow grants an exemption.

About 260 billion euros ($281 billion) in Russian assets, such as central bank reserves, have been frozen under sanctions imposed by Moscow over the war in Ukraine. About 190 billion euros of these assets are held at Euroclear, a Belgium-based central securities depository.

European Union officials told Reuters last week that the bloc could provide about half of the $50 billion loan to Ukraine. But Italian Prime Minister Giorgia Meloni, the host of the G7 summit, later said the money would come from the United States, Canada, Britain and probably Japan, and that EU states would not participate directly for now.

Zakharova said Russia had received “direct signals” from some G7 countries that they would not participate in such actions “because they know the costs will be extremely painful.” She did not name the countries or provide any further details to back up that claim.