Can't see them confiscating Russian state funds unless a country is very stupid, possibly the UK would qualify for that bracket, a, it would be illegal.I think I have responded to this question before, in any case I'll set down my position here...
I have seen war first hand, with direct involvement and as a passing - escaping - civilian. It is horrible, the destruction, the butchery, the filth, the waste, all of these are horrible, revolting, terrifying and repellent. So no, I do not want British troops to fight in Ukraine, that is literally the last thing I want to happen.
The thought of our own people dying, and even some people I know or know of being killed or mutilated is dreadful and, quite naturally, it revolts me even more than it happening to people a thousand miles away, regardless of how much I support their cause and admire them.
And yet... rather than see Putin victorious there with all that would mean for the future security of us and many others, I would as a last resort be prepared to see British troops defending Ukraine, and I would go too - for what that would be worth, even with me now being an over-fifty very former junior commander. And the reason I'd see this happen and go myself is exactly the same as the reason the older men are fighting in Ukraine - so my children would not / hopefully never have to.
But far better than that, I'd see us - meaning the UK and the Western Alliance as a whole - properly arm and supply Ukraine - but even us alone if there was no other choice; though I have no doubt that there would be other countries like-minded. If we need to adopt a war-economy, so be it, the matter really is that important.
I think it self-evident that we need to boost our domestic arms industry, this is a very good opportunity to do it. Many object to it, but I have no problem with increasing tax or diverting spending to support Ukraine.
However, the obvious and far, far better alternative to that is to use the billions of Russian state funds in Western keeping. The UK alone has something like £25bns, as does the US, Belgium has about $170bns of Russian cash in its care... yes you read that correctly, $170bns. (and let's not forget the interest that has accrued )
Admittedly not my field of practice, but the principle is simple: a state can sue a state, and can receive damages and costs. The wheels have started to turn on this, but they are going very slowly.
Anyway, that's my position as clearly as I can state it.
b. China would immediately remove any movable assets out of any country that did it causing serious damage to that countries currency.
Seizing any profit on those assets is a possibility but again most likely to be challenged in court & any country doing it might end up losing.