Politicians around the world have made a show of talking tough about taking away the comforts of Russia’s wealthy elite after the country’s invasion of Ukraine. Yet actually seizing those assets will be much more difficult.
There are layers of shell companies and vast troves of wealth hidden in tax havens. Elites might transfer assets to relatives or, in the case of superyachts and private jets, park them in out-of-reach jurisdictions. Cryptocurrencies further complicate the global hunt.
The key difference, according to lawyers, economists and ex-government officials interviewed by Bloomberg, is that sanctions can be passed relatively quickly, while seizure is a more drastic step that involves a potentially lengthy legal process.