Biden administration begins urgent talks with allies on the use of Russian assets
The White House is pressing Britain, France, Germany, Italy, Canada and Japan to develop a strategy by February 24
The administration of US President Joe Biden has begun urgent talks with allies on the use of $300 billion in frozen Russian Central Bank funds for military assistance to Ukraine.
Source. This was reported by The New York Times.
Earlier, U.S. Treasury Secretary Janet Yellen claimed that without congressional action, the withdrawal of funds "is not something that is allowed by law in the United States."
The main argument of the opponents of these actions is that countries around the world will not dare to keep their funds in the Federal Reserve System of New York or in dollars if the United States sets a precedent for confiscation of money.
But the White House, in coordination with the G7, is again considering whether it can use its powers or whether it should ask Congress to direct these funds. It is noted that support for such a step in Congress is growing, and this gives the Biden administration optimism.
According to officials, talks between finance ministers, central bankers, diplomats and lawyers have intensified in recent weeks as the Biden administration puts pressure on Britain, France, Germany, Italy, Canada and Japan to develop a strategy before February 24, the second anniversary of Russia's full-scale invasion of Ukraine.
The seizure of assets would represent a significant step forward and would require careful legal review. Policymakers must determine whether the money will be sent directly to Ukraine or used in other ways to benefit it.
They are also discussing what restrictions might be attached to the funds, such as whether the money can only be used for reconstruction and the Ukrainian economy, or whether it can be spent directly on military aid.
"This amount of money we're talking about here is a game changer," said Philip David Zelikow, a State Department official under the Bush administration.
According to the newspaper, withdrawal of such a sum of money from another state would be unprecedented and could lead to unpredictable legal and economic consequences. In particular, it would lead to lawsuits and retaliatory measures by Russia.
Background. It has also been reported that the EU has authorized the confiscation of assets by European companies whose businesses in Russia were taken away by Putin.
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