Moscow has issued a strong diplomatic warning to Washington, indicating potential repercussions if the US proceeds with the expropriation of frozen Russian assets. Deputy Foreign Minister Sergey Ryabkov cautioned that Russia could downgrade diplomatic relations with the US if its assets are confiscated.
The ongoing dispute centers around approximately $300 billion in Russian central bank assets that have been frozen by the US and its allies as part of sanctions related to the conflict in Ukraine. While the EU has largely held these assets, Washington has advocated for their confiscation and transfer to Ukraine for its military efforts against Russia.
The recent passage of the REPO Act by the US House of Representatives authorizes the US president to seize Russian funds held in American banks, a move that has drawn criticism from skeptics like Senator Rand Paul, who views it as an "act of economic war."
While some Western nations, notably the US and the UK, push for asset confiscation, the EU has been hesitant due to concerns about potential repercussions, including destabilizing the euro. Moscow has warned of economic and diplomatic countermeasures if its assets are seized, emphasizing that such actions would be viewed as theft.
Ryabkov highlighted that Russia is evaluating potential responses, including actions against the assets of Western opponents and diplomatic measures. He emphasized that Russia is not eager to sever diplomatic ties with the US but will not hesitate to respond firmly to asset expropriation.
Kremlin spokesman Dmitry Peskov echoed these sentiments, cautioning that seizing Russian assets would undermine the foundations of the global economic system and harm the US economy in the process.
The escalating tensions reflect the deepening rift between Russia and Western nations over the Ukraine conflict, with asset seizures emerging as a focal point in the broader geopolitical standoff. The coming weeks may see intensified diplomatic maneuvers and potential economic repercussions as both sides navigate this contentious issue.