Media: Russia plans fast-track nationalisation of assets amid EU moves on frozen funds

Russia may nationalize and quickly sell foreign-owned assets in retaliation if Europe seizes Russian holdings abroad, Bloomberg reports, citing a government insider.

President Vladimir Putin signed a decree on September 30 introducing a special privatization mechanism that accelerates the sale of state-owned companies, both Russian and foreign. The order limits pre-sale valuations to 10 days and speeds up state registration of ownership. State-owned Promsvyazbank PJSC will handle the transactions.

The move comes as EU leaders push to use €140 billion of frozen Russian central bank assets to support Ukraine, following the U.S. under President Donald Trump scaling back direct aid. The EU plan aims to avoid outright seizure, with Russia set to recover funds if it agrees to compensate Ukraine for war damages.

Hundreds of Western firms still operate in Russia, including UniCredit, Raiffeisen Bank, PepsiCo, and Mondelez, raising concerns that the new law could target international holdings if Moscow chooses a retaliatory path.

Kremlin spokesman Dmitry Peskov previously labelled the EU proposal an “illegal seizure of Russian property, theft,” while Putin warned that Western moves against Russian reserves could destabilize the global financial system.

Since 2022, Russia has seized 3.9 trillion rubles ($48 billion) in assets, mainly from Russian citizens accused of extremism or corruption. So far, foreign corporate assets have been placed under temporary management rather than fully nationalized. The new decree, however, allows for rapid sales, potentially to preferred buyers at discounted rates, signalling a readiness for retaliatory economic measures.

By Vugar Khalilov