Russia will not seize European Union assets currently operating within its borders, Russian Deputy Finance Minister Alexei Moiseev has said, according to Kommersant.

This statement comes as Russia seeks to prevent additional escalation of tensions, while Brussels considers the possibility of confiscating Moscow's assets within the EU. However, Moiseev warned that the Kremlin would reconsider its position if the EU proceeds with confiscating Russian assets that have been frozen in Europe. He also dismissed claims that a recent Russian decree on accelerated privatisation was linked to potential retaliation against EU assets. The decree, which speeds up the sale of state-held assets, was explained as a domestic economic measure aimed at facilitating privatisation, rather than targeting foreign holdings.

"We are not confiscating anything yet. The Europeans haven't called for confiscation, so we won't confiscate anything until they do. If they do end up confiscating, then we will consider it," Moiseev told reporters on the sidelines of a conference, according to Kommersant.

Following Russia's invasion of Ukraine, the US and EU imposed severe economic sanctions on Russia, including freezing approximately $250bn in Russian sovereign assets. These sanctions were intended to limit Russia's access to the global financial system and to pressure its leadership to end its military actions in Ukraine. At the same time, EU leaders have debated the legal and ethical implications of using these frozen assets to support Ukraine’s defence and reconstruction. However, the idea of seizing these funds remains legally complex, with concerns about the stability of the global financial system and potential legal precedents.

Amidst these tensions, Russia has taken steps to restructure its economy, including nationalising foreign-owned assets from companies that exited or ceased operations in Russia due to the ongoing conflict. Over the past year, Russia has seized assets valued at around $50bn, including those of Western companies that left the country. These actions are framed by the Russian government as necessary responses to what it perceives as "unfriendly" actions from the West.

The nationalisation efforts resemble Russia's chaotic privatisation process in the 1990s, although the government has emphasised its intention to eventually sell these assets to private owners. Moiseev noted that privatisation is a priority, as the government seeks to reduce state control and stimulate the economy by quickly transferring seized assets to private hands