Loading ...MOSCOW — The Russian Parliament on Wednesday took the first major step to authorize the Kremlin to seize foreign assets and use them to compensate individuals and businesses in Russia that are being hurt by Western sanctions over the Ukraine crisis.
The law stands to arm the government of President Vladimir V. Putin with a remarkable weapon of retribution, effectively allowing the government to compensate the very insider businessmen and other elite figures who Western leaders hoped would convince the Russian leader to reverse his course in Ukraine.
The sanctions imposed by the United States, the European Union and others in varying phases since March had been intended to bring Russia to heel. While the full parameters of the legislation are unclear, Western corporations hold billions of dollars worth of assets in the energy-rich country.
Under the law, courts could seize foreign-owned property in Russia to top off the budget after these outlays, according to the draft, which was approved on the first of three readings. For a bill to become law in Russia, it must pass the lower chamber of Parliament three times and the upper chamber, the Federation Council, once. Then it must be signed by the president.
Early discussions of the rule precipitated a stock sell-off late last month.