The Russian Ministry of Justice has developed a draft law that would allow the confiscation of assets from "unfriendly" countries and individuals associated with them, involved in the "freezing" of Russia's central bank's gold and foreign currency reserves abroad. According to the draft, foreign assets in Russia would be transferred to state ownership.
The draft law establishes a procedure for evaluating damages, verifying the validity of claims, and the possibility of seizing assets from foreign states and related individuals. Until now, Russia has not confiscated foreign assets. There were other legislative restrictions on foreign property, such as blocking assets in accounts intended for currency exchange transactions and transferring company shares into temporary state management.
Any property could be subject to confiscation, including real estate, shares in Russian companies, bank accounts, as well as equipment or infrastructure objects owned by foreign investors.
The draft law will be used by Moscow as a pressure tool on the West. The Kremlin hopes that the creation of this confiscation mechanism will force some states to reconsider their position on the confiscation and use of proceeds from the "frozen" assets of Russia's central bank.
