The Kremlin has already resigned: analysts said that it would happen in case of confiscation of $ 300 billion assets of the Russian Federation

Meanwhile, Russia's Ministry of Foreign Affairs called the asset confiscation plan for Ukraine's reconstruction, the 21st Century Piracy, and threatened European countries "legal consequences". Countries whose sovereign bonds have been acquired by Russia will not be considered default if Western governments decide to confiscate frozen Russian $ 300 billion. This was stated in the company that is engaged in analytical research on the financial market Moody's and S&P Global, Reuters reports.

US and British officials insist on the arrest of assets of Moscow, frozen in Belgium and other European countries. In particular, they seek to receive wider support for the Great Seven (G7) during the negotiations in February, shortly before the second anniversary of the Great War in Ukraine.

Back in June 2022, the United States and Moody's acknowledged that Russia had made a default on its bonds, since international sanctions did not allow Moscow to pay for securities owners - the interpretation that the Kremlin rejected. The Russian Central Bank states that France, Germany, the United Kingdom and other sovereign states would also be in a state of default if the bonds owned by Russia were confiscated and Russia has not received proper payments. But Moody's says it's different.

"Our ratings usually do not reflect the specific considerations of the owners, so we will not consider this scenario as a default scenario for these countries," said Torten Nestmann, Senior Vice President of Moody's Investors Service in response to Reuters. The EMEA Sovereign Emea Sovereign Rating Sector Frank Gill Gill also reported that this is unlikely to be considered a default, since interest payments are made through a payment agent who will continue to pay them to other creditors.

It should be noted that most frozen reserves of Russia are kept in cash and sovereign bonds of France, Germany, Britain, Austria and Canada. "The interpretation of rating agencies can dispel the risk of default, as some European officials are still afraid that any asset confiscation can create an alarming precedent when other countries will require compensation for past hostilities in Western countries," the source said.

Meanwhile, the Russian authorities are privately inclined to believe that the reserves are almost lost, but it intends to file a legal challenge and take decisive measures in response, according to four persons familiar with the opinion of government and the central bank. "At heart, everyone has already said goodbye to them (assets - ed. The second source reported that Russia has already "said goodbye", it is convinced that European capitals will be pressured by the United States.

The third Russian person also confirmed that the Russian Federation is unlikely to prevent confiscation, but will threaten "revenge", for example, the confiscation of Western assets in Russia and the break of diplomatic relations with foreign countries that are considered unfriendly. The Russian Foreign Ministry called the confiscation plan of its assets to help rebuild Ukraine, "21st Century Piracy" and stated that Moscow would be forced to use a rigid answer.

The Kremlin stated that Europe would face "inevitable" legal consequences. Focus has already reported that US Presidential Administration Joe Baiden has supported a bill that would confiscate about $ 300 billion from frozen Russian assets and send these funds for Ukraine's reconstruction. However, before the adoption of Biden wants to reconcile the confiscation of assets of the Russian Federation with the Allies on the Big Seven (G7), especially in Europe.