A Russian Duma deputy said the government could confiscate people’s money if the West blocks Russia’s funds abroad. Russian citizens could risk losing savings due to a wave of Western sanctions because of the war between Russia and Ukraine.
The Russian government could seize its citizens’ savings due to a possible wave of economic sanctions from the United States of America and other allied nations. That was the warning of the deputy member of the Communist Party of Russia and deputy chairman of the Duma’s economic policy committee, Nikolai Arefiev.
In talks with NEWS.ru, Arefiev said the government might seize retail client deposits if Russia experiences a blockade of all its funds abroad.
The deputy explained that Russia has USD 640 billion in gold and foreign exchange reserves. Financial punishments against the nation could include disconnection from the SWIFT global payment network and a currency exchange ban.
As a result of the possible blockade, Russia could potentially extract at least 60 trillion rubles ($750 billion) from their citizens’ savings.
Russia Armored Itself to a Wave of Possible Sanctions
Arefiev’s views came after the economist Mikhail Khazin’s warning about how dangerous the seizure of savings is. As for a possible scenario of confiscation and a possible later return, the deputy spoke about the return of Soviet deposits back in 1990. He highlighted that five generations would pass before that because the money would have already experienced devaluation.
Russian President Vladimir Putin officially revealed and executed a “special military operation” in Ukraine, which could unleash a package of sanctions against the nation.
The Joe Biden administration in the United States of America signed an order to apply new economic punishments on Russia. The measures, an effort to hit Russia’s economy for its latest behavior, directly target Russian entities and critical individuals for Putin’s administration.
Biden explained that the procedures are the first pack of sanctions and are ready to go beyond that limit. Germany has also applied a measure to restraint Russia’s future access to European energy markets. The European Union and the United Kingdom also launched additional policies, including a $290 billion fine on Russia for executing import substitution.
According to local reports gathered by Cointelegraph, Russian state-backed banks Sberbank and VTB could also deal with a series of sanctions. Later the Bank stated that they got rid of the situation and did not get included in the ban list; this stance allows them to keep carrying out activities in the sector.
The key Role Bitcoin Would Play in this Conflict
Meanwhile, the Russian Foreign Ministry explained that the entity would respond to possible Western penalties. The institution said they would react strongly to this series of sanctions, the response will be logistically-crafted, and the United States of America will feel this response.
The statement and the entire geopolitical scenario, generated speculation, and concern within the digital currency community. Among these concerns, Balaji Srinivasan, a crypto investor, and former chief technology officer at Coinbase, suggested that the ministry’s notice looks like a threat of possible cyberconflict with the West.
By: Jenson Nuñez
