Russia admits it is impossible to stop confiscation of reserves frozen in West

The Russian authorities see no real possibility of preventing the confiscation of US$300 billion of Russian foreign exchange reserves frozen by Western countries after the full-scale invasion of Ukraine.

Source: Reuters with reference to four sources close to the Kremlin

Details: The sources described the mood prevailing in the Russian government and the Central Bank.

They say that although publicly officials are threatening tough retaliatory measures and planning legal action if hundreds of billions of frozen sovereign assets are seized and transferred to Ukraine, in reality, Moscow believes that the reserves are already de facto lost.

"Deep down, everyone has already said goodbye to the reserves," one source told Reuters.

Moscow believes that European countries will give in to US pressure, and the Russian authorities are unlikely to be able to prevent the confiscation.

Despite this, Russia will file a lawsuit anyway.

"There will certainly be [a legal process]. It is a kind of ritual. We will not roll over, we're going to fight," a source told Reuters.

Background:

Earlier, Kremlin officials said that Europe would face inevitable legal consequences in the event that Russian reserves are confiscated.

According to Bloomberg, the Russian Central Bank has already hired lawyers to defend its position in the courts and is close to reaching an agreement with several firms.

The Russian authorities have also instructed experts to study the relevant foreign legislation and precedents from other countries, the agency's sources said.

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