But before he fled he had all his convertible funds transferred.

Only his estate was confiscated.

Hawksley was in London when the war broke out.
There was a lot of red tape, naturally, regarding the funds.

I shan't bother you with that, Hawksley, hoping to better his protector's future, returned to Russia and joined his regiment and fought until the Czar abdicated.

Foretasting the trend of events, he tried to get back to England, but that was impossible.