MOSCOW, Nov 8 (Reuters) - Russian President Vladimir Putin has issued a decree on Wednesday that permits foreign investors with frozen funds in Russia to utilize them for acquiring blocked assets belonging to Russians abroad. This move comes in response to the sanctions imposed by the West in light of Russia's actions in Ukraine, which has resulted in over 3.5 million Russians having assets frozen abroad, amounting to approximately 1.5 trillion roubles ($16.3 billion).

The decree stipulates that citizens of countries considered "unfriendly" by Russia will be allowed to purchase frozen securities held abroad by Russians using funds from special "type-C" accounts in Russia, which are currently blocked. The first phase of this plan aims to unblock accounts worth around 100 billion roubles.

The text of Putin's decree explicitly states that it is a direct response to the actions of the United States and other countries and organizations that Russia deems as "unfriendly and contradictory to international law."

This latest measure signifies a step towards Russia's efforts to mitigate the economic impact of Western sanctions. By allowing foreign investors to utilize frozen funds, it aims to provide a solution for Russians whose assets have been locked abroad, while also potentially attracting investment into the country.

The move is likely to have implications for both Russian citizens and foreign investors. For Russians with frozen assets, this decree offers an opportunity to access their funds through the purchase of blocked assets. Additionally, it opens up possibilities for foreign investors to acquire previously inaccessible Russian assets, further expanding the investment landscape.

The exact details and mechanisms of implementing this decree are yet to be confirmed, and it remains to be seen how effective this measure will be in alleviating the economic strain caused by the Western sanctions. Nevertheless, this step by Russia demonstrates its determination to counteract the impact of the punitive measures and assert its sovereignty in international affairs.

As this new development unfolds, analysts and stakeholders will closely monitor the implementation of the decree and assess its implications for the Russian economy, international relations, and the individuals affected by the asset freeze.