The US and its European allies launched an unprecedented campaign against the Russian elite aiming to punish Moscow for its invasion of Ukraine. The West is targeting those who prop up the Russian President. It comes as no surprise that Russian tycoons, top officials, and Kremlin propagandists prefer to store their savings and live beyond their home country.
Since the first days of the hostilities, Western policymakers have taken determined efforts to cut ties with Russia. They aim to identify, withdraw or at least freeze assets of Russian politically exposed people. Yachts, villas, bank accounts, and other properties are subject to sanctions in that jurisdiction where they have been detected. Moreover, the US, the UK, Canada, and the European Commission came up with a joint statement, saying that they would ban Russia’s central bank from using its international reserves. €22 billion has been frozen in France alone. Apart from the assets of the Russian regulator, the French authorities froze €150 million belonging to the Russian ultra-rich as well as deprived them of real estate worth €539 million, comprising 30 high-end residential properties, and two yachts worth €150 million. Importantly, it is the tip of the iceberg. An appropriate commission was appointed to search for more assets of Russian high-profile people in case the ownership is obscured. In retaliation, the Kremlin warned that assets and facilities of French companies in Russia could be seized in favor of the Russian state. However, French businesses are not alarmed, taking into account huge Russian assets confiscated in France.
Apart from the stolen money stashed away by Russian tycoons, deputies, and top officials, the US and EU lawmakers imposed heavy sanctions on a part of the Bank of Russia’s humongous assets. According to Russian Finance Minister Anton Siluanov, almost $300 billion has been frozen on the bank’s overseas accounts. This is roughly a half of the total gold and forex reserves in the amount of $640 billion. However, these funds have not gone. The regulator is not able to use its assets in full. Notably, even despite such tough sanctions, Russia is not exempt from fulfilling its obligations. The government should respect its public debt commitments.
