Russia and US Heading for Major Escalation

Russia and the U.S. could be headed for a major escalation, according to a senior Russian diplomat who said the confiscation of frozen Russian assets could lead to diplomatic relations between the two nations being severed.

Sergei Ryabkov, Russia's deputy foreign minister in charge of ties with the U.S., non-proliferation and arms control, made the remarks in an interview with Russian state-run news agency Interfax after reports emerged that the Biden administration could be close to seizing more than $300 billion in Russian central bank assets stashed in Western nations and handing them to Ukraine to aid its war effort.

Newsweek couldn't independently verify the reports, and has contacted the Biden administration for comment via email.

Ties between Washington and Moscow have become increasingly strained over Russian President Vladimir Putin's decision to launch a full-scale invasion of Ukraine in February 2022. Russian officials and guests on Russian state TV have routinely called for strikes on U.S. soil over aid and weapons provided by the Biden administration to Kyiv.

The U.S. expelled two Russian diplomats in October in response to a similar move by Moscow but the two countries have maintained diplomatic relations. The former U.S. ambassador to Moscow, John Sullivan, urged Russia in June last year not to close the U.S. Embassy in order to keep a communications channel open, Reuters reported.

On Thursday, The New York Times cited unidentified senior American and European officials as saying that the White House is quietly signaling new support for confiscating the immobilized Russian sovereign assets. The Biden administration, in coordination with G7 governments, is exploring whether it can use its existing authorities or if it should seek congressional action to use the funds, the publication reported.

Previously, U.S. Treasury Secretary Janet Yellen said that it would not be legal for the U.S. to seize those assets. "It's not something that is legally permissible in the United States," she said.

Ryabkov has said that one of the possible red lines to the breakdown of relations between Washington and Moscow could be the confiscation of frozen Russian assets.

Expanding on those comments, the deputy minister said that diplomatic relations in themselves, "are not some kind of totem that needs to be worshipped, it is not a sacred cow that everyone protects."

"But we will not take the initiative to destroy them, to tear them apart. It is not in our rules to act in this manner, including based on our understanding that Russia and the United States have a central role in maintaining international security and strategic stability," he said.

"As for the trigger for a possible round of confrontation with the potential for a breakdown in relations, the trigger could be confiscation of assets, further escalation of military escalation, and much more. I wouldn't go into negative forecasts here. I'm just saying all this so that there is a clear understanding—we are ready for any scenarios, and the United States should not have the illusion, if it exists, that Russia, as they say, holds on to diplomatic relations with this state [the United States] with both hands," he added.

Newsweek has contacted the U.S. State Department for comment by email.

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