Russia Warns It Will Seize Western Assets if EU Moves to Confiscate Russian Holdings

The Kremlin has warned that Russia will retaliate against any European Union (EU) attempt to seize its frozen assets abroad by nationalizing and selling off property owned by Western companies still operating inside the country.

The warning follows a new decree signed by President Vladimir Putin on Tuesday, introducing a fast-track privatization mechanism for state and foreign-owned assets. The order, published on the government’s website, reduces the valuation period for targeted companies to 10 days and accelerates state registration of new ownership.

Under the law, state-owned Promsvyazbank PJSC has been appointed to oversee such transactions. The decree emphasizes that the measures are directly linked to sanctions imposed on Russia since its full-scale invasion of Ukraine in February 2022.

Kremlin Threatens “Symmetrical Response”

According to a person close to the Russian government, Moscow could invoke the new mechanism if the EU proceeds with plans to use profits from frozen Russian central bank reserves to support Ukraine.

EU leaders are currently debating a proposal to provide Kyiv with €140 billion ($164 billion) in loans, backed by immobilized Russian assets. The initiative has gained momentum following the United States’ decision under President Donald Trump to scale back direct financial support for Ukraine.

“In case of seizure, there will be a response,” Kremlin spokesman Dmitry Peskov told reporters on Thursday, branding the EU plan an “illegal seizure of Russian property, theft.”

Hundreds of Western companies still operate in Russia, ranging from banking to consumer goods. These include UniCredit SpA, Raiffeisen Bank International AG, PepsiCo Inc., and Mondelez International Inc. Their assets could be at risk if the Kremlin follows through with its threats.

Mounting Economic Pressure

Since the war began, Russia has seized or placed under temporary management several foreign-owned businesses, often selling them at steep discounts to local buyers. However, it has so far refrained from a blanket nationalization of international corporations.

The Moscow-based law firm Nektorov, Saveliev & Partners estimates that the total value of assets confiscated by the state since 2022 has reached 3.9 trillion rubles ($48 billion).

The new decree could also be applied against Russian citizens who hold dual nationality or face accusations of extremism and corruption.

Global Financial Risks

Analysts warn that the escalating asset battle could further strain the global financial system. Putin has previously cautioned that the international order would be undermined if the West proceeded with seizing Russian state reserves, which remain frozen in Western banks.

For now, Moscow’s threat appears contingent on the EU moving forward with its controversial asset-use proposal. But with both sides hardening positions, the standoff adds another layer of uncertainty to the already volatile global economic and geopolitical landscape.