How? The country doing the seizing is not at war with the government in question. Even during the war you would expect the overseas property to be quarantined

How? The country doing the seizing is not at war with the government in question. Even during the war you would expect the overseas property to be quarantined to use it as a lever during potential peace talks. As opposed to the unreversible confiscation such as giving it to somebody else to own. I'm not sure if that's what happening here.