Biden administration backs confiscation of Russian assets in favor of Ukraine – Bloomberg

According to Bloomberg, the administration of US President Joe Biden supported a bill that would let it seize a portion of the $300 billion frozen Russian assets and then send them to Ukraine.

Citing a National Security Council memorandum to the Senate Foreign Relations Committee, the publication highlights "a shift as the White House seeks to rally support in Congress to further fund the war against Vladimir Putin's forces."

"The bill would provide the authority needed for the executive branch to seize Russian sovereign assets for the benefit of Ukraine," the National Security Council said in the memo — one of the three such statements the agency has reviewed.

Biden's backing of this move comes as Republicans in Congress have blocked over $60 billion to Ukraine, partially due to concerns that Washington bears too great a financial burden, the publication reports.

The president's administration also seeks to coordinate this step with G7 allies, especially in Europe, where approximately $200 billion of frozen Russian assets are held. However, the publication notes there is less support for their arrest, especially unilaterally, among European allies.

According to a senior administration official, the National Security Council backs the new funding source as one of the tools the US is considering to help Ukraine make Russia pay for damages from the war.

According to the World Bank's estimates, Ukraine's recovery could cost around $411 billion. It is expected that this issue will be raised at the G7 leaders' meeting on the anniversary of Russia's invasion of Ukraine next month.

In Congress, there is a possibility that this decision could be adopted as part of an additional support package for Ukraine. However, for this to happen, leaders of committees in both houses must sign its inclusion, the publication points out.

The article stresses that the idea of using Russia's own funds to finance Ukraine's recovery is seen as a way to bolster support for Kyiv, as some Republicans oppose continued funding.

Republican House Speaker Mike Johnson supported this idea in an interview with the New York Post, calling it "an eminently responsible thing for us to do."

According to one of the two bill authors, Republican Senator Jim Risch, the Senate has broad bipartisan agreement on this issue.

"After a year of negotiations, it's past time for the committee to consider this legislation," he stated.

Democrats and Republicans on the committee disagree on two key parts of the bill, as it requires Biden to coordinate his actions with G7 countries regarding asset seizures. However, it does not require their approval, which, some argue, could give the US the opportunity to act unilaterally.

It also includes wording to prevent Russia from challenging the asset seizure in US courts, which could be potentially vulnerable in terms of constitutional compliance.

According to the memos Bloomberg has seen, initially, the White House was ambivalent about including the requirement for G7 approval. However, later, it emphasized the need to act jointly with allies.

"[Such a requirement] would make it more likely that Europe (where the vast majority of assets are located) will be willing to take this step, given their concerns that taking this action in the Russia context could increase the likelihood that we seize assets in other cases where the legal and policy justification is less strong," said one of the National Security Council memos.

As stated in the document, "It also reduces the risk that this step undermines faith in the United States as a destination for foreign investment."

Earlier, Ukrainian Foreign Minister Dmytro Kuleba reported progress in the confiscation of Russian assets for the benefit of Ukraine and expressed hope that unified legal frameworks for this would be approved in 2024.

"So now we are already in the second phase, where all efforts should be consolidated into a single legal framework. That is, there should be common rules for the European Union, for the Group of Seven countries," he explained.

It was reported that the administration of US President Joe Biden has intensified efforts to confiscate about $300 billion in frozen sovereign Russian assets located in Western countries.

On December 12, the European Commission approved a legislative proposal to use the revenues from frozen Russian assets for Ukraine's recovery, which the European Council took into consideration on December 14.