Putin Signs Decree on Compensation for US Damage to Russia, Central Bank

The decree, titled "On the Special Procedure for Compensation for Damage Caused to Russia and the Russian Central Bank in Connection with Unfriendly Actions Taken by the United States," was listed in the official legal database, Sputnik reported.

The decree allows the state and the central bank to seek redress in court if US actions result in unlawful loss of property.

Property of the United States or US-linked individuals in Russia, including citizens, tax residents and their associates, may be used to generate compensation for plaintiffs.

A commission for the oversight of foreign investment in Russia will be tasked with assessing damage claims and identifying assets that could be used to pay off damages in line with the principle of proportionality. These include movable and immovable property of the US and associated individuals, bonds and shares in Russian legal entities, as well as property rights.

The Russian government has four months to introduce amendments to Russian laws that would allow for the implementation of the presidential decree.

The G7, led by the United States and the European Union, have been discussing ways to confiscate the Russian assets since the start of Russia's special military operation in Ukraine in February 2022. Earlier in May, US Secretary of the Treasury Janet Yellen said she planned to urge the Group of Seven partners to collectively find a way to unlock the value of Russian sovereign assets for the benefit of Ukraine. The issue is expected to be discussed at the G7 summit in the Italian region of Apulia from June 13-15.

An estimated $300 billion in Russian central bank assets are frozen in Western accounts. The Kremlin has maintained that any attempts to confiscate Russian assets would violate international law.