Russia Warns of Potential Diplomatic Breakdown with US Over Asset Seizures

Russia has indicated the possibility of cutting diplomatic relations with the United States in response to the potential confiscation of Russian assets, which were frozen due to the ongoing conflict in Ukraine. This statement was made by Deputy Foreign Minister Sergei Ryabkov, as reported by the Interfax news agency. Ryabkov emphasized that the United States should not be under any illusion about Russia’s commitment to maintaining diplomatic relations.

Strained Relations

The relationship between Russia and the United States has deteriorated significantly, described by Ryabkov as “below zero”. This decline is largely attributed to the U.S. military and financial assistance provided to Ukraine in the conflict, which is now nearing the end of its second year.

Conditions for Diplomatic Rupture

While Russia, having launched a “special military operation” in Ukraine in February 2022, does not intend to be the initiator of a diplomatic break, Ryabkov mentioned that several factors could lead to such an outcome. Among these are the confiscation of assets and further military escalations. However, he refrained from making negative forecasts, stating that Moscow is prepared for any scenario.

Western Push to Allocate Frozen Assets

Some Western politicians have proposed that the frozen Russian assets, valued at approximately $300 billion, be transferred to Ukraine to aid in rebuilding its war-torn economy. Kremlin spokesman Dmitry Peskov responded that such actions would have severe repercussions on the global financial system.

Russia’s Stance on Asset Seizure

Peskov warned that Russia would not tolerate any country that seizes its assets and would consider retaliatory measures, including the confiscation of Western assets within Russia. This stance underscores the escalating tensions between Russia and the West.

Retaliation Against Sanctions

In response to Western sanctions aimed at penalizing Russia for its involvement in the Ukraine conflict and obstructing its financing capabilities, Russia has taken various countermeasures. Most recently, President Vladimir Putin ordered the removal of two European companies, Wintershall Dea and OMV, from multi-billion-dollar gas projects in the Russian Arctic, signaling a continued tit-for-tat approach in the geopolitical arena.