Russian authorities cite confiscation of assets from countries considered hostile

eye for an eye. In response to the US administration’s proposal to liquidate the assets confiscated from the Russian oligarchy and transfer the proceeds to Ukraine, Moscow threatens to confiscate the “assets of hostile countries”.

“It is correct, in relation to a company located on Russian soil, whose owners belong to hostile countries where such decisions are made (to seize Russian assets, editor’s note), to respond with the opposite action: confiscation of these assets,” the spokesman said. From the lower house of parliament, Vyacheslav Volodin, on his channel on Telegram.

“The proceeds from the sale will be used to develop our country,” he adds.

Accuse “A number of hostile countries: Lithuania, Latvia, Poland and even the United States“Lack of respect for international law and “Just to indulge in theft.”

“behave in a civilized manner”

Mr. Volodin assures us that “Today, Russian entrepreneurs buy foreign companies operating in Russia, buy shares of partners who want to leave our market ” It urges “enemy” states to:

“Behave in a civilized manner and respect international law.”

The Duma speaker cites the US Congress’ passage this week of a non-binding text calling on President Joe Biden to sell confiscated Russian assets and transfer the proceeds to Ukraine.

“A dangerous precedent has been set in which the United States must restore itself. This decision will not affect the economy of our country. Yachts, villas and other property seized from wealthy (Russian) citizens in no way contribute to development” of Russia, notes Mr. Volodin.

effective western sanctions

Russia’s central bank cut its key interest rate to 14% on Friday, a sharper drop than analysts had expected and others could announce by the end of the year if inflation allows.

The bank lowered the key interest rate from 17 to 14%, estimating that “Risks to prices and financial stability stopped increasing, which created the right conditions for interest rate cuts.” This is the second drop in less than a month. After the central bank significantly raised the interest rate to 20% in the wake of the first sanctions after the entry of Russian troops into Ukraine at the end of February, it actually lowered it for the first time by surprise on April 8, bringing it all the way to 17%.

Analysts had expected a rate cut on Friday, but were counting on a smaller move. The central bank itself, whose next meeting is scheduled for June 10, believes that there “Space for a key rate cut in 2022 if the situation develops in line with central expectations.”

At the moment, “Although it continues to rise, the current rates of consumer price inflation have slowed down significantly after peaking in the first half of March. The slowdown in inflation is largely due to the strengthening of the ruble and declining consumption,” the bank noted. In her press release.

Over the whole of 2022, annual inflation could reach 23% before slowing next year and returning to a 4% target in 2024, the central bank estimates.

In the meantime, she notes that “the external environment is still difficult for the Russian economy and significantly affects economic activity,” noting that “companies are facing great difficulties in terms of production and logistics.”

“We are in a region of enormous uncertainty,” Central Bank Governor Elvira Nabiullina admitted during a press conference.

Russia’s GDP is expected to fall 8-10% this year, but it is expected to “start growing rapidly again in 2023 thanks to a structural transformation” of the economy, according to the bank’s forecast. However, due to the fundamental effects, GDP growth is expected to remain in the range of -3% to 0% in 2023, before a projected 2.5-3.5% increase in 2024.

President Vladimir Putin has repeatedly admitted that the two-month sanctions imposed by the West create great difficulties in the country, but he also considered that the Western economic “blitzkrieg” has failed and that Russia has the opportunity to rebuild and diversify its economy, which is highly dependent on hydrocarbon exports.