US congressional committee greenlights bill to transfer Russian assets to Ukraine

The US House Foreign Affairs Committee overwhelmingly supported a bipartisan and bicameral bill on the use of frozen Russian assets to aid Ukraine.

The committee approved the bill with 40 votes in favor and two against, Rubryka reports, referring to the November 8 bill hearing.

"To authorize the Secretary of State to provide additional assistance to Ukraine, as well as for other purposes, using assets confiscated from the Central Bank of the Russian Federation and other sovereign assets of the Russian Federation," the document said.

The Secretary of State Antony Blinken, together with the United States Agency for International Development, must provide the appropriate committees of Congress with "an assessment of Ukraine's most urgent needs in reconstruction, security assistance, and humanitarian aid" within 180 days after the law enters into force if it is passed.

The document mentions that the confiscated funds are accumulated in a special fund for the support of Ukraine, and "in case of need, ownership and income from confiscated Russian sovereign assets (…) are transferred to the United States government."

Republican congressman Michael McCaul submitted the relevant document. This bill requires the Biden administration to transfer frozen Russian sovereign assets to Ukraine.

"It's time for Russia to pay for the war it started," McCall said.

McCaul added during the hearings in Congress that his bill also makes it impossible to return Russian assets to the Russian Federation until it pays compensation to Ukraine.

"With the development of the war, our economic strategy must also develop. This includes support for Ukraine, which will allow it to become a full-fledged economic player in Europe," co-chairman of the Committee on International Relations, Democratic Congressman Gregory Meeks, added during the hearings.

Meeks also stressed that this development should happen during the war and not only after the victory of Ukraine.

At the beginning of September, the United States announced that it transferred assets confiscated from Russian-sanctioned oligarchs to Ukraine.

What we know about the confiscation of Russian assets

During 2022-2023 and as of the beginning of August, the Security Service of Ukraine seized the assets of Russian businessmen financing the war, worth almost ₴190 billion ($5.28 billion).

These assets included the corporate rights and real estate of dozens of enterprises, the ultimate beneficiaries of which are the Russian corporations Rosneft, Rosatom, Gazprom, Rostec, and Russian banks.

Economic sanctions were applied to more than 4,000 Russian companies that directly financed the military invasion, helped Russia circumvent sanctions, and purchased materials, military equipment, and weapons components in other countries.

The assets of Russian oligarchs are also being seized abroad:

• Great Britain has frozen more than £18 billion ($23 billion) of assets and imposed sanctions against more than 1,550 Russians since Russia began its full-scale invasion of Ukraine and as of mid-June this year. The Czech Republic froze the assets of Russian oligarch Vladimir Yevtushenkov, who is close to Russian President Vladimir Putin.
• Poland also offered to give the frozen assets of the Russian Federation to Ukraine and EU countries.
• On October 12, the Estonian government approved and sent a resolution about using Russian frozen assets to help Ukraine to the parliament.
• The EU is studying the procedure for confiscating €200 billion of frozen assets of the Russian Central Bank. The European Commission is also developing its proposals.
• Belgium created a special €1.7 billion fund, which is filled with taxes on Russian assets frozen in the country,  to support Ukraine.
• In July, Italy announced that it had frozen the assets of Russian oligarchs worth about €2 billion after the Russian Federation invaded Ukraine last year.