Frozen funds fiasco: White House backs bill to seize Russia's assets
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Bloomberg reports that the White House backed a bill that would seize Russia's frozen funds and transfer them to Kiev as foreign aid.
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The Russian flag flies outside the Embassy of Russia in Washington, Feb. 24, 2022. (AP)
The White House backed a bill that would seize Russia's frozen funds and transfer them to Kiev as foreign aid, Bloomberg reported citing a note from the US National Security Council (NSC) to the Senate Foreign Relations Committee.
The NSC revealed that the US administration welcomes the bill "in principle", adding that it "would provide the authority needed for the executive branch to seize Russian sovereign assets for the benefit of Ukraine."
Simultaneously, the report said the US would rather consult with its G7 counterparts to avoid instating mistrust in its financial conduct.
This comes after the US and Co. passed the REPO litigation, the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act, which would allow the seizure of Russian funds to Kiev for rebuilding purposes until Russia retreats from Ukraine and compensates the country for the damages caused by war.
Read more: US, G7 to explore appropriation of Russia's $200+ bln in 2024: FT
Kremlin warns against Russian funds theft plot
However, in late December, Kremlin Spokesperson Dmitry Peskov warned that attempts to utilize Russia's frozen assets as funds for Ukraine would be met with consequences.
The New York Times had previously revealed that the US and its European allies, which have suffered difficulties in sending Ukraine funds, have considered the allocation of $300 billion in frozen Russian funds to Ukraine as military aid.
In a statement, Peskov said, "Those who are trying to initiate this, and those who will implement it, must understand that Russia will never leave those who did this alone. And it will constantly exercise its right to legal challenge, international, national, and otherwise. And this, of course, will have — both Europeans and Americans understand this very well — it will have legal consequences for those who initiated and implemented it."
He added that attempts to seize Russia's assets have always been a topic of contemplation among the US and EU, but that it is profoundly unlawful, unacceptable, and could bring damage to global finance and the international system.
Read more: Freeze of Russian assets one of biggest thefts - Russian official
