In the latest development, a key ally of Russian President Vladimir Putin has cautioned that Russia could retaliate harshly if the West proceeds with the seizure of nearly $300 billion of frozen Russian assets to assist Ukraine.
What Happened: Valentina Matviyenko, the speaker of the Russian upper house of parliament, announced on Tuesday that Russia is ready to react strongly if its frozen assets are seized, CNBC reported on Monday. Matviyenko, who is also a member of Russia's Security Council, disclosed that a draft law on response measures has been prepared, but did not elaborate on the potential retaliatory actions.
The proposal to seize frozen Russian assets abroad is still under discussion among Western officials. A large chunk of these assets, around $224 billion, are situated in the European Union, as per a Russian lawmaker. The United States holds a comparatively smaller amount of these assets, valued between $5 and $6 billion.
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Why It Matters: The seizure of these assets could heighten tensions between Russia and the West, possibly triggering further conflict. This development follows the ongoing disputes between Russia and Ukraine, with Russia asserting to have captured a second eastern Ukrainian village within two days, a claim Ukraine refutes.
Earlier this year, Ursula von der Leyen, the European Commission President, suggested using Russia's frozen assets to provide military support to Ukraine, which is grappling with a severe ammunition shortage due to Russia's military aggression.
Moreover, Russian Finance Minister Anton Siluanov expressed concerns about the trustworthiness of the dollar and euro, attributing the decline to the ongoing discussions about the $300 billion in Russian assets that were frozen in response to the 2022 invasion of Ukraine.
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