US Congress proposes to allow confiscation of Russian Central Bank assets in favour of Ukraine

On Thursday 15 June, a bipartisan group of U.S. senators introduced a draft act on the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act (REPO), which significantly expands the possibility of confiscation of Russian assets and their transfer in favour of Ukraine.

Source: This was announced by the United States Senate Committee on Foreign Relations, members of which prepared the initiative, reports European Pravda

Details: The bill provides for additional assistance to Ukraine at the expense of assets confiscated from the Central Bank of the Russian Federation and other sovereign assets of Russia.

If passed, the document would, among other things, give the president the authority to confiscate Russian sovereign assets that have been frozen in the U.S. and hand them over to help rebuild Ukraine.

In addition, sanctioned Russian companies will not be able to profit from assets "until Russia withdraws from Ukraine and agrees to provide compensation for harm caused by its unprovoked war."

The REPO also provides for increased coordination between the United States and allies for the similar confiscation of Russian sovereign assets in other countries and "ensures Putin – not U.S. taxpayers – foots the bill for the damage caused by Russia’s unprovoked invasion of Ukraine."

A similar initiative was filed by representatives of the Democratic and Republican parties in the US House of Representatives.

The United States has at least once confiscated the assets of a Russian sanctioned individual because of violations of the sanctions regime and transferred them to Ukraine. At the same time, the situation with the assets of the Central Bank of the Russian Federation is different, since they belong to the state, and not to individuals or legal entities that are under sanctions.

The discussion on how to use the assets of the Russian Central Bank continues in the European Union. They offer to transfer to Ukraine some of the profits received as a result of the use of such assets.

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