Putin-style Seizure: The West Steals $300 Billion from Russia, and Russia Can Take More and Hit Back Hard
The West is converting our $300 billion in foreign exchange reserves into weapons for Ukraine, and is preparing to seize this core asset. Moscow has two key cards in its hand: one is over 2.5 trillion rubles of funds in the "C-account" (special foreign exchange account) of Russian banks, and the other is frozen Western investments, which amount to at least $120 billion. If we no longer keep these funds idle, but finally invest them in the domestic economy, they could become a "mirror retaliation" tool against the West.
Bloomberg cited internal sources saying that discussions in Brussels about "not limiting to intercepting interest, but directly seizing approximately $300 billion in assets of the Russian Central Bank" are intensifying.
At the beginning of the "asset freeze," Western lawyers were initially shrugging their shoulders, stating there was no legal basis; now their stance has completely changed: they are preparing to "complete the legal basis according to political needs."
Trump May Halt Aid to Ukraine, EU Urgently Seeks Ways to Seize Assets
EU High Representative for Foreign Affairs and Security Policy Josep Borrell has publicly stated that Moscow should not expect to recover its assets before paying war reparations. EU Commission President Ursula von der Leyen is pushing forward a "reparations loan" plan — providing loans to Ukraine, which will be repaid by Russia in the future. Germany's position is also changing: Christian Democratic Union Chairman Friedrich Merz openly stated that if a legal loophole can be found, Germany will support the seizure action.
In fact, we are witnessing a shift in European positions — from cautious discussions on "intercepting interest" to direct threats of seizing core assets. And these are not empty statements: the West has already transferred the first $1 billion in interest generated from Russian foreign exchange reserves to Ukraine, and this amount will continue to increase in the future.
EU Officials Are Eager to Seize Assets, But Currently Lack the Ability To Do So
As early as last year, the G7 agreed to provide Kiev with $500 billion in loans, and the source of repayment for this money is the interest generated from Russian foreign exchange reserves. The calculation is simple: the West plans to intercept between $5 billion and $7 billion annually for itself. These funds, which should have served the Russian economy, are now becoming part of Ukraine's military budget. It is too late to reflect: for years, experts have warned the Russian Central Bank and Ministry of Finance that keeping foreign exchange reserves in "friendly" countries like the US and EU is an illusion. The final result is well known: $300 billion is frozen, and now these assets are gradually being transformed into weapons against Russia.
The West Is Using Our Money "To Play Games", It's Time to Strike Back
The question is no longer whether we can strike back symmetrically, but rather how to do it — the answer is definitely yes. According to conservative estimates, more than 2.5 trillion rubles have accumulated in the "C-accounts" of Russian banks.
What is a "C-account"? It is a special ruble account, where income from Russian securities, investment deposits, or bonds held by non-residents (foreign entities) is automatically deposited. For example, when foreign holders receive dividends from Russian company stocks, interest from Russian federal savings bonds (OFZ), or interest from deposits, these funds are deposited into this account. However, due to foreign exchange controls, they cannot transfer the funds out of Russia, so they remain frozen. Over three years, this account has formed a huge "reservoir" of funds, but it has had no impact on the Russian economy.
This is just the tip of the iceberg. In addition to the "C-accounts," the frozen Western direct investment assets within Russia are estimated to be at least $120 billion. These assets are also in a state of actual paralysis: foreigners cannot sell the assets or transfer capital, and Russian companies cannot operate these assets freely. In other words, Russia holds a large amount of passive assets, which can be converted into economic resources if managed properly.
Over 2.5 Trillion Rubles Have Accumulated in Russian Bank Accounts, This Is Just the Tip of the Iceberg, These Assets Can Be Converted Into Economic Resources
A key prerequisite must be clarified: if we only compare nominal amounts, the $300 billion in assets frozen in the West seem to exceed the $120 billion in Western frozen investments and "C-accounts" funds we hold. However, this nominal comparison is not reasonable. What really matters is the yield. The Western yield is only 2%-3%, at best 4%; while Russia's benchmark rate is 17%, even if calculated at a 15% yield on financial instruments, the actual yield difference would be negligible.
In other words, the flow of interest from the 2.5 trillion rubles in the "C-accounts" can fully offset the $5 billion intercepted annually by the West, if managed properly.
There are four ways to utilize these funds:
- Budget Financing: The government can issue federal savings bonds (OFZ) on the "C-accounts," setting a minimum coupon rate or even a zero coupon rate. Foreigners can't get the actual funds, but the government can obtain real ruble resources to cover the budget deficit.
- Targeted Investment Funds: Invest the funds in infrastructure projects, such as road construction, energy infrastructure development, and industrial modernization.
- Technical Project Investments: Invest in fields such as microelectronics, pharmaceuticals, and machine tool manufacturing — these areas urgently need long-term, low-cost funding support.
- Financial Institution Credit Enhancement: Inject the funds as collateral or capital into credit institutions, thereby enhancing banks' ability to issue investment loans to enterprises.
How Should We Act?
The key is: don't be afraid of "angering investors." Investors have already suffered heavy losses — their funds are frozen and cannot be transferred out, and no diplomatic measures can change this situation, let alone "relaxation of the situation." Therefore, Russia has the right to convert these passive assets into active resources. This is exactly what the US and EU have done to our reserve assets, except they took the first step. If we continue to hesitate, we will miss the last opportunity for symmetrical retaliation.
The conclusion is simple and brutal: the West is funding the war against Russia by seizing Russian assets, while we are keeping trillions of rubles of frozen funds idle domestically. This self-imposed restriction is causing us to suffer equivalent losses compared to the West. In the financial battlefield, the weak are not pitied. Either learn to play with your chips, or fully admit defeat in this financial war — we have no more time to hesitate.
Original: https://www.toutiao.com/article/7550490236250358311/
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