Kremlin warns it could widen foreign company asset seizures

The Kremlin warned on Wednesday that Russia could widen the list of foreign companies subject to temporary asset seizures in case of the "expropriation" of Russian assets abroad under new legislation.

"If necessary, the list of companies could be expanded," Kremlin spokesman Dmitry Peskov told reporters, a day after President Vladimir Putin signed a decree allowing asset seizures.

"The aim of the decree is to create a compensation fund for the possible adoption of retaliatory measures against the illegal expropriation of Russian assets abroad," Peskov said.

The comments came after Putin signed a decree approving the takeover of two Western energy groups -- Finland's Fortum and Germany's Uniper -- and threatened to do the same with other companies from countries that had put sanctions on Russia.

The main aim is to "constitute a compensation fund for the possible application of countermeasures against the illegal expropriation of Russian assets abroad," said Peskov.

The new legislation means that owners will not be deprived of their property but will "no longer have the right to make management decisions", according to Rosimushchestvo, the Russian federal agency named as "temporary manager" of assets seized.

Putin's decision to send troops to Ukraine in February 2022 triggered unprecedented sanctions and an exodus of foreign corporations from the country, including Starbucks and McDonalds.

 

AFP