US says there is way to confiscate Russian assets in favour of Ukrain

The United States has stated within the G7 discussions that there is a way to confiscate sovereign Russian assets that is consistent with international law, and relevant debates have picked up in recent weeks.

Source: Financial Times, as reported by European Pravda

Details: The United States has not publicly advocated for the confiscation of Russia's assets but has taken a more assertive stance in recent weeks during non-public discussions within the G7, arguing that there is a path to asset forfeiture that is "consistent with international law".

"G7 members and other specially affected states could seize Russian sovereign assets as a countermeasure to induce Russia to end its aggression," the US government said in a discussion paper obtained by the Financial Times.

The document explains that, considering Russia's full-scale invasion of Ukraine, asset confiscation can be "pursued as a lawful countermeasure by those states that have been injured as specially affected by Russia’s violation of the international law".

A US source told the FT that Washington is actively negotiating the use of Russian sovereign assets and believes that a decision can be reached quickly. The source suggested that G7 leaders might discuss this issue at their meeting in February 2024, on the second anniversary of Russia's full-scale invasion of Ukraine.

The FT reports that the discussions also suggest that confiscating Russian assets might become a source of aid to Ukraine as the US and EU have not approved financial support for 2024 due to internal disputes.

"We need to find a way to get cash to Ukraine, in whatever form. And more and more countries are pointing at the assets and wondering why they are still sitting there," said an EU diplomat involved in the talks during this week's EU summit.

Background: On 12 December, the European Commission approved a legislative proposal to use the proceeds from frozen Russian assets to help Ukraine recover, which the European Council took note of on 14 December.

Learn more: Euroclear will help us: will investment income from Russian assets in EU become compensation to Ukraine

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