Russia Warns West of Potential $288 Billion Loss in Assets

Russia’s state RIA news agency reported on Sunday that it had estimated potential losses of at least $288 billion for Western nations if they were to confiscate frozen Russian assets to aid Ukraine’s reconstruction. 

The calculation includes assets and investments held by the European Union, G7 nations, Australia, and Switzerland.

Background on Asset Freeze:

Following Russia’s military intervention in Ukraine in February 2022, the U.S. and its allies imposed sanctions, prohibiting transactions with Russia’s central bank and finance ministry. 

This move froze approximately $300 billion of sovereign Russian assets in the West.

U.S. and British officials have been working to kickstart efforts to confiscate Russian assets immobilized in various European locations to contribute to the reconstruction of Ukraine. 

Discussions around issuing a stronger statement of intent are expected during a meeting of Group of Seven (G7) leaders in late February.

Russia’s Accusations and Retaliatory Threats:

Russia has accused the U.S. of pressuring European countries to sign up for similar measures. The Kremlin has warned of a retaliatory list of assets from the U.S., Europe, and other regions that would be confiscated if Western nations proceed with asset seizures.

RIA cited data indicating that direct investment by the EU, G7 nations, Australia, and Switzerland in the Russian economy at the end of 2022 amounted to $288 billion. 

The EU nations were reported to hold $223.3 billion of these assets, with major contributions from Cyprus, the Netherlands, and Germany.

European Investors and Assets:

Among EU nations, Cyprus held $98.3 billion, the Netherlands had $50.1 billion, and Germany held $17.3 billion in Russian assets. 

France and Italy were also listed among the top European investors, with investments worth $16.6 billion and $12.9 billion, respectively.

G7 Countries and Other Nations:

The report mentioned Britain as one of the largest investors among G7 countries, with assets in Russia totaling about $18.9 billion. 

The United States had $9.6 billion, Japan $4.6 billion, and Canada $2.9 billion in Russian assets at the end of 2022. 

Switzerland and Norway, known for signing anti-Russian measures, held $28.5 billion and $139 million, respectively, while Australia had $683 million invested at the end of last year.