Russian President Vladimir Putin expressed his discontent and disagreement over plans from the United States and Europe to use Moscow's frozen assets to aid Ukraine as funding for the latter has slowly dried up.
Moscow officials have warned that they would act robustly to Western moves to seize its assets or deploy missiles. On Friday, Russian Deputy Foreign Minister Sergey Ryabjkov said they would sever diplomatic relations with the US if the latter decides to confiscate his country's frozen assets under sanctions.
Russia's Frozen Assets
Russian officials also warned that they could respond to the deployment of missiles in Europe or Asia despite reports of another offensive in Ukraine. Ryabkov recently threatened that Moscow has the right to cut diplomatic ties with Washington if frozen Russian assets are handed to Kyiv.
The situation comes as Western countries are discussing confiscating more than $1 billion in Russian assets. These were frozen due to sanctions over Moscow's war in Ukraine that started in February 2022, as per Aljazeera.
The Russian official noted that the US "must not act under an illusion that Russia is clinging with both hands to diplomatic relations with that country." Later, Kremlin spokesperson Dmitry Peskov spoke at a media briefing.
He said that the countries that decide to seize Russian assets would never be left in peace and that Moscow would look at what Western assets it could seize in retaliation. Some American officials have suggested that $300 billion of funds from Russian Central Bank reserves frozen in February 2022 should be handed to Kyiv.
Peskov warned that any such move would seriously blow the international financial system and that Russia would work on defending its rights in the courts and through other means.
Reports noted that United States President Joe Biden's administration has already started urgent discussions with G7 nations on how to use the frozen Russian assets. These are believed to be held in Europe. According to The Guardian, authorities would decide if they could be used directly on the Ukrainian military effort or just for construction and budgetary use.
Aiding Ukraine's War Efforts
The Democratic US president was said not to have signed off on the strategy yet. Still, the discussions have accelerated as Republicans have blocked a deal in Congress for further military aid for Ukraine.
That decision comes amid a desperate moment when Kyiv's counteroffensive failed to provide a decisive breakthrough in its war against Russia. Peskov said, "The illegitimate seizure of our assets invariably remains on the agenda both in Europe and in America." He added that this is unacceptable.
Treasury Secretary Janet Yellen has, until recently, argued that without Congressional action, seizing the funds was "not something that is legally permissible" in the US She added that there has been concern among some top American officials that countries worldwide would hesitate to keep their funds at the New York Federal Reserve.
American officials said that talks among finance ministers, central bankers, diplomats, and lawyers have intensified recently. The Biden administration reportedly pressed Britain, France, Germany, Italy, Canada, and Japan to devise a strategy by Feb. 24, said the New York Times.
