US sets conditions for returning $300 billion frozen in the West to Russia

On November 8, US Assistant Secretary of State for European and Eurasian Affairs James O'Brien said the West will not return nearly $300 billion in frozen Russian assets until Moscow pays for the costs of its special military campaign in Ukraine.

Speaking at a hearing of the US Senate Foreign Relations Committee, Mr. O'Brien added that US President Joe Biden and leaders of the Group of Seven (G7) industrialized nations have previously confirmed that Russia must pay the costs of its special military operation in Ukraine.

Some $300 billion worth of frozen Russian assets in the West will not be returned to Russia until it pays for the damage.

Earlier the same day, Governor of the Central Bank of Russia Elvira Nabiullina warned that the West's seizure and freezing of Russian assets would "have negative consequences, as a precedent for the overall development of the global financial system."

Meanwhile, Russian President's press secretary Dmitry Peskov stressed that Moscow will take legal measures to resolve the issue of Russian assets being confiscated in the West.

In addition, Russia will study response measures that best suit its interests.

Also on November 8, Russian President Vladimir Putin signed a decree under which part of the assets of foreign investors frozen in Russia can be exchanged for frozen assets of Russians abroad. The decree took effect from the date of signing.

According to Russian Finance Minister Anton Siluanov, there are currently more than 3.5 million Russian citizens with assets worth up to 1,500 billion rubles ($16.3 billion) frozen abroad.

The Russian authorities propose to exchange these frozen funds for money that foreigners accumulate in “C” type accounts in Russia.