Russia prepares for nationalization of Western assets: which companies are at risk.

Nationalization of foreign property in Moscow in response to EU decisions

According to inkorr.com: Moscow has decided to urgently nationalize the assets of foreign companies using a special buyout procedure. This decision is linked to a European Union ruling on the use of frozen funds to finance Ukraine. Bloomberg agency reported this, referring to President Putin's decree.

The document provides for a rapid assessment of the value of confiscated property within 10 days and quick documentation of ownership rights. The state bank 'Promsvyazbank' will be obliged to complete the transactions. This decision was a result of discussions on a plan to provide loans to Ukraine totaling €140 billion from funds that have been frozen by the European Union during a meeting of EU leaders in Denmark.

The assets of Western companies operating in Russia, including UniCredit, Raiffeisen Bank, PepsiCo, and Mondelez, are at risk of confiscation.

Since the beginning of 2022, the Russian authorities have already confiscated assets of foreign companies worth more than 3.9 trillion rubles, approximately equivalent to $48 billion. The funds obtained are being used to finance the federal budget.

Financial support for Ukraine from the EU

The European Union is working on mechanisms for financial assistance to Ukraine. A 'reparations loan' of up to €130 billion is planned, but the final amount of funding will be determined after the International Monetary Fund assesses the country’s financial needs in 2026-2027. Currently, approximately €210 billion of Russian assets are frozen in Europe, of which €175 billion are in cash in the accounts of the Belgian depository Euroclear.

The European Commission has already proposed a mechanism for using Russian assets to support Ukraine without direct confiscation. This approach will allow substituting the funds from deposits in the European Central Bank with EU bonds, preserving the legal immunity of Russian assets and directing them toward financial assistance for Ukraine.

In response to the European Union's decision on financing Ukraine, Russia has announced plans to nationalize the assets of foreign companies, which could significantly impact international economic relations. In particular, Western companies are at risk as Moscow seeks to compensate for financial losses and support its budget. Discussions on financing mechanisms for Ukraine in the EU are also ongoing, indicating the European community's efforts to support the affected country.