NYT Report
3 Trillion Dollar Russian Assets Hidden in the West
The United States is considering seizing Russian overseas assets to support Ukraine. As support for Ukraine has been stalled due to opposition from Republicans in the U.S. Congress, the search for alternative support measures has gained momentum.
According to foreign media including The New York Times (NYT) on the 23rd, the Biden administration has begun discussions with allies about seizing $300 billion worth of Russian central bank assets hidden in Western countries to use for supporting Ukraine. It is reported that the U.S. proposed to the Group of Seven (G7) member countries to unify their opinions by February next year, marking two years since the outbreak of the Ukraine war.
Initially, the U.S. was cautious about confiscating frozen Russian assets. Treasury Secretary Janet Yellen also emphasized that seizing funds without congressional action is "not legally permissible in the United States." This is due to concerns that if foreign assets are confiscated, countries around the world might hesitate to keep funds at the Federal Reserve Bank of New York or deposit them in dollars. The shift in the U.S. administration’s stance is analyzed to be because Western additional support has not been smooth, as congressional approval for Ukraine aid has reached a deadlock.
The Biden administration has started legal reviews with the G7 regarding potential violations of international law and the necessity of congressional approval. Additionally, discussions are underway on whether the frozen Russian assets should be used solely for Ukraine’s economic reconstruction and budget support, or if they can also be used for military purposes such as weapons support.
The European Union (EU) has already agreed on a plan to use frozen Russian assets to support Ukraine. On the 12th, EU member states reached a consensus on using the proceeds from frozen Russian assets held by regional financial institutions for Ukraine’s reconstruction costs. Recently, the German Federal Prosecutor’s Office seized $790 million from the Frankfurt bank accounts of Russian financial companies under sanctions.
Philip Zelikow, senior fellow at the Hoover Institution, said, "This money is truly a game-changer (in the war)," adding, "The current battle over this money is, in some ways, the core offensive that must be fought in this war."
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