Why the West should be wary of permanently seizing Russian assets

100 days into the , the biggest sanctions programme ever imposed on a major economy is still being tightened. America and Europe have frozen Russia’s currency reserves held in Western banks. On June 3rd the European Union joined America and Britain in placing a partial embargo on , and also cut off Sberbank, its largest lender, from the interbank messaging system. A motley crew of oligarchs and their toys have been sanctioned. In Fiji the , a 100-metre superyacht with a helipad and pool, is the subject of Western actions, as are private planes in Dubai and in England. Sanctions have caused serious disruption to Russia’s economy and if kept in place will impair its performance for years. Even so, their limitations are clear. Owing to high energy prices—Brent crude costs about $120 a barrel—Vladimir Putin’s regime is enjoying bumper revenues. Because only Western countries and a handful of Asian allies are enforcing sanctions, many customers continue to buy Russian oil. As a result, by the end of 2023 its crude production is expected to be only about 20% below its pre-war level. Kremlin-linked tycoons are still free to travel much of the world. Russian missiles continue to in Ukraine and devastate its .