In a year of living under Western sanctions, Russia was able to accumulate $80 billion in foreign assets. Bloomberg reports that this amount is split between real estate, investments in foreign subsidiaries and cash. The publication believes that thanks to offshore parallel funds, Russia manages to maintain the stability of its economy.
The publication’s interlocutors believe that Moscow managed to achieve record revenues in 2022 due to the West’s delay in imposing sanctions on the energy sector. Thanks to the placement of assets in offshore companies, Russia almost did not feel the consequences of the restrictions.
Because Europe was slow to attack Russia’s energy sector, the Kremlin was able to accumulate one of the largest current account surpluses in its history. This de facto reversed the effect of the March 2022 central bank asset freeze, as Russia was able to recover what it had lost.
writes Bloomberg.
Thanks to the accumulated assets, according to the publication, Russia should also be able to maintain the stability of the economy this year. However, Ukraine’s allies are now looking for ways to withdraw Russian money in favor of Kiev.
Any new income Moscow accrues abroad could make it an attractive target for Russia’s adversaries. The fate of Russian funds abroad is increasingly in the spotlight as Ukraine supporters like Canada and Germany discuss the idea of using billions in frozen Russian assets to compensate the country and help it rebuild.
- says the publication.
However, at present, even the most notorious Russophobes, such as Estonia, cannot find legal grounds for the seizure of Russian money and its further use at their discretion.
