US Congress takes step forward in confiscating Russian assets to help Ukraine

Photo: Bloomberg Creative Photos

The US Senate Foreign Relations Committee and House Foreign Affairs Committee have approved legislation to help create conditions for the confiscation of Russian assets and their transfer to Ukraine for rebuilding following the destruction caused by the Russian Federation’s war of aggression.

Source: Reuters, as reported by European Pravda

Details: The Senate Foreign Relations Committee voted 20-1 in favour of the unprecedented “Rebuilding Economic Prosperity and Opportunity (REPO) for Ukrainians Act.”

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A similar bill was passed by the House Foreign Affairs Committee with overwhelming bipartisan support.

If the bill is passed by the Senate and House and signed into law by President Joe Biden, it will allow Washington to seize central bank assets from a country with which it is not at war for the first time in its history.

Ben Cardin, the Democratic chairman of the Senate Foreign Relations Committee, is optimistic about the bill, pointing out that it has broad support from both Democrats and Republicans in the Senate and House of Representatives, as well as the presidential administration.

He recognised the revolutionary nature of this legislation, but at the same time noted the seriousness of the consequences of Russia’s actions.

“That’s why it’s got to be done right,” Cardin said.

The bill provides that any seized Russian funds will be used to rebuild Ukraine. It is unrelated to Biden’s request for US$61 billion in supplemental funding for Ukraine for security assistance.

Background:

• Senior EU officials told the media on Tuesday that the EU is unlikely to confiscate Russian central bank assets that have been frozen in Europe, despite G7 plans to discuss the legality of such a step at a February meeting.
• Earlier, Josep Borrell, the head of EU diplomacy, stated that there was an agreement in the EU to advance to the final stage of work on the opportunity to use the income from frozen Russian assets in favour of Ukraine.
• Bloomberg previously learned that President Biden’s administration has supported a bill that would allow it to seize some of the US$300 billion in frozen Russian assets to provide them to Ukraine.

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