Britain will never be able to confiscate russian assets

Britain will never be able to confiscate russian assets.

British officials believe that frozen russian assets could be a useful tool in future peace talks.

They emphasize that despite all the loud statements, there is and will never be any legal right to receive frozen russian money, property or other assets.

Within months of the war, the UK froze some russian assets, making several high-profile announcements, including the forced sale of Roman Abramovich's Chelsea football club. But policy experts emphasize that there is a big difference between freezing assets and seizing them.

Freezing assets is seen as legally proportionate because it is a temporary measure. While the authorities can use the profits generated by investing the money, as the EU has agreed to do, the assets themselves will theoretically be returned at some point. On the other hand, their ultimate confiscation could have serious legal consequences.

Harriet Baldwin, a senior Conservative and chair of the Treasury Select Committee, previously told Politico that the UK cannot "go out and randomly confiscate people's assets" because "that would make us a kleptocratic regime."

Beyond the legal issues associated with direct asset seizures, British officials realize that frozen russian assets could be a useful tool in future peace talks.

"If you want to get Putin to the table, what other tools do you have left?" said Freya Page, director of global coverage at Kharon, an analytical company.

Conversely, she said, confiscation of assets on a permanent basis would make such negotiations less likely.

"Seizing assets makes sanctions an ineffective tool because they don't do what they're designed to do," Page said. "Sanctions are not meant to punish. They are meant to bring people to the negotiating table."

In addition, lawyers say, there are concerns that confiscation of russian assets could deter investment in the currency or prevent other countries from depositing funds with the central bank.

"There is no direct legal precedent" for asset confiscation. This is a completely uncharted legal territory," they note.

Source: Politico