Russia Takes Control of Two Western Firms in Retaliatory Move

The Kremlin says the action 'mirrors the attitude' of Western governments toward Russian assets

Russian President Vladimir Putin signed an order Wednesday that gives Russia temporary control over Russian subsidiaries of two Western energy firms, a response to the US and EU freezing Russian assets.

The order took control of the Russian assets of the Finnish firm Fortum and the German-owned Uniper. The Kremlin warned that the action could be expanded to take control of more assets.

“The decree adopted is a response to the aggressive actions of unfriendly countries,” Kremlin spokesman Dmitry Peskov said. “This initiative mirrors the attitude of Western governments towards foreign assets of Russian companies.”

Since Russia invaded Ukraine, the US, and its allies have frozen hundreds of billions of dollars that belong to Russia’s central bank and more than $58 billion that belongs to sanctioned Russians. The US has seized some of the assets and transferred over $5 million to Ukraine and is looking to use more Russian funds for Kyiv.

Peskov said that Russia’s move was temporary and “does not deal with property issues and does not deprive the owners of their assets because the external management is temporary and only means that the original owner no longer has the right to make management decisions.”

It’s likely Moscow could freeze more Western assets if the US and its allies impose more sanctions. Peskov signaled the seized assets could be used as leverage by Moscow to get some sanctions relief. “The main purpose of the decree is to form a compensation fund for the possible application of reciprocal measures in response to the illegal expropriation of Russian assets abroad,” he said.

Author: Dave DeCamp

Dave DeCamp is the news editor of Antiwar.com, follow him on Twitter @decampdave.