Russia Targets Western Firms as EU Pushes Ukraine Reparations Loan

Russian President Vladimir Putin has signed a decree enabling the rapid nationalization and resale of foreign-owned assets in Russia, in what analysts say is a direct response to European Union discussions over a potential “reparations loan” for Ukraine.

The Gaze reports this, referring to Bloomberg.

The Kremlin’s decree significantly accelerates the process of seizing and selling assets, cutting preliminary valuation to 10 days and streamlining property registration. All transactions will be channeled through the state-owned Promsvyazbank.

The move comes as the European Commission drafts a scheme to provide Ukraine with a €140 billion loan backed by frozen Russian assets. Kyiv would only be required to repay the funds if Moscow itself agrees to pay reparations or directly finance Ukraine’s reconstruction.

The plan, however, still faces hurdles, as it requires unanimous support from all EU member states. Some capitals remain cautious about the legal and financial implications of turning frozen Russian holdings into collateral.

Meanwhile, Russia has stepped up confiscations of property from both foreign companies and Russian citizens, particularly those with dual nationality or accused of extremism or corruption. The assets are often resold to raise revenue for the state budget.

Despite sweeping sanctions, hundreds of Western businesses, including UniCredit, Raiffeisen Bank International, PepsiCo, and Mondelez International, continue to operate in Russia, leaving them vulnerable to Moscow’s retaliatory measures.

As The Gaze reported earlier, on October 1, Ukraine received another tranche of €4 billion from the European Union as part of the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative, which provides for financing from frozen Russian assets.