Blinken: Utilizing Frozen Russian Assets to Aid Ukraine Will be Achieved ‘One Way or Another’
World leaders are considering using frozen Russian assets to support Kyiv, as reported by U.S. Secretary of State Antony Blinken. The Group of Seven (G7) members have discussed this proposal to help reconstruct Ukraine’s infrastructure following Russia’s invasion.
During a G7 meeting of foreign ministers in Italy, Blinken confirmed that the issue of Russia’s assets was on the agenda. Officials are striving to find solutions that align with international law.
While the Kremlin has criticized this idea as “theft,” a White House official argued that the real theft was the loss of Ukrainian lives, destruction of infrastructure, and seized land.
“Utilizing these Russian assets to aid in Ukraine’s rebuilding is crucial,” said Blinken. “It’s a supplement, not a replacement, for the support already provided by the global community.”
At the start of the conflict in February 2022, the U.S. and its allies froze around $300 billion in Russian central bank assets.
Washington’s Dilemma
Earlier this year, the Senate Foreign Relations Committee overwhelmingly approved the REPO for Ukrainians Act, a bill that would confiscate Russian central bank assets. The bill directs President Joe Biden to collaborate with partners to take similar actions.
The White House has since expressed support for liquidating these assets and transferring the proceeds to Kyiv. Treasury Secretary Janet Yellen, during spring IMF and World Bank meetings, acknowledged that strategies are being pursued to utilize these funds to assist Ukraine and called for swift approval of financial and military aid efforts from Congress.
Yellen emphasized the humanitarian, moral, and economic imperative of supporting Ukraine, noting the negative impact of the conflict on global economies and the need for sustained resolve against Russian aggression.
Several Republicans have cautioned against this approach. Sen. Rand Paul expressed concerns that seizing assets would escalate the conflict and harm Ukrainians. Sen. J.D. Vance warned that the plan could backfire on the U.S. financially and geopolitically.
Foreign Leaders’ Perspectives
UK Foreign Secretary David Cameron and European Commission President Ursula von der Leyen shared progress in accessing frozen Russian assets for Ukraine. Von der Leyen suggested disbursing funds as early as July 1, while EU Chief Diplomat Josep Borrell proposed allocating proceeds to Ukraine, with a focus on weapons.
IMF Managing Director Kristalina Georgieva and Ukrainian Prime Minister Denys Shmyhal discussed creating an international mechanism to confiscate Russian assets for Ukraine’s defense, ensuring legal backing. IMF Deputy Managing Director Gita Gopinath highlighted the need for legal support to avoid potential challenges in the future.
