BREAKING: Ukraine Seizes $3.4 Million in Russian Sanctioned Assets, Including 800 kg of Silver Ingot

Last Updated on: 12th July 2022, 08:48 pm

According to verified Ukrainian-language Telegram channels, and as reported by the Ukraine Telegram Archive and the Security Service of Ukraine (SBU), assets worth nearly $3.4 million USD have been seized by Ukrainian state forces from Russian invaders.

The news of the asset seizure broke on July 12, 2022, at 11:30 a.m. EST. The seizure was authorized by the Darnytsk District Prosecutor’s Office in Kyiv. 

The following assets have been seized by the SBU and are currently held by the state administration:

• 800 kg of silver in the form of bullion and bank ingots
• 6 hectares of land and 3 large apartment lots located in Kyiv with a combined area of 400 square meters
• Hundreds of thousands of dollars’ worth of USD, EUR, and UAH currencies

 

At present, all seized assets have been transferred to the responsible Ukrainian government agency, the National Agency for the Detection, Investigation and Management of Assets Obtained from Corruption and Other Crimes (ARMA). 

Ukrainian state media has declared that these seized assets will help fund the Ukrainian state budget and will aid in the country’s ongoing military engagements. 

Further, official reports indicate that Ukrainian authorities confiscated the assets as part of a large-scale asset seizure campaign in Kyiv and Kharkiv. The assets were taken from “thieves,” as described by state media, were who funded by “Russian handlers” who were engaged in “fraudulent activities against [Ukraine].”

How Much Silver Did Ukraine Seize?

As of July 12, 2022, the per-kilogram spot price of silver is $609 USD. Therefore, 800 kilograms of silver ingot amounts to roughly $487,000 USD, or nearly half a million dollars. 

Source: Security Service of Ukraine

What Ukraine’s Silver Seizure Means for International Investors

It is no small feat that Ukraine’s state security apparatus has seized nearly a metric ton of silver from sanctioned Russian entities. It is likely that the confiscated silver was apprehended in order to uphold sanctions against the transfer of assets from Russian individuals or companies implicated in international sanctions. 

Metrics sourced from Investopedia indicate that Russia produces about 1,3000 metric tons of silver per year. The seizure of 800 kg, therefore, amounts to 0.062% of the country’s total per-annum silver output. In total, Russia is reported to have about 45,000 metric tons of silver in reserve; therefore, today’s seizure constitutes less than 0.002% of their total silver in reserve. 

In short, Ukraine’s seizure of sanctioned Russian silver does not comprise a large percentage of the either country’s overall supply. However, it does indicate that future gold or silver seizures may be to come which could disrupt global supply chains and the spot price of both precious metals. 

Global investors should watch closely to see if Russian gold, destined for international markets, will continue to be apprehended by the SBU. If seizure operations continue, we could see noticeable upward price pressure put on silver or gold, given that global supply would consequently diminish.

In the weeks ahead, keep a close eye on the silver spot price. As news continues to break on this story, silver is down slightly (-0.88%) on the day, as of July 12th. We will continue to monitor the situation closely and will break new information emerging from this developing story. 

Source: Security Service of Ukraine