A proposal within the U.S. House Foreign Affairs Committee aims to authorize the use of frozen Russian assets to support Ukraine. The plan, debated in a committee meeting, drew votes from its 40 members present, with two voting against. Overall, the committee consists of 51 lawmakers, predominantly Republicans with 27 seats and Democrats holding 23 seats.
The bill states that the President may seize Russian sovereign assets that fall under the jurisdiction of the United States. Once seized, the funds would be placed into the Ukraine Support Fund. The Secretary of State would then be empowered to allocate these resources to provide further assistance to Kyiv, including reconstruction and humanitarian aid for Ukrainian residents, as well as other purposes tied to Ukraine’s restoration and the well-being of its people.
Additionally, the proposal requires the Foreign Affairs Minister to notify the relevant House committee at least 15 days before any transfer of funds to the government of Ukraine or to other recipients. The document emphasizes that the power to seize, liquidate, and transfer Russia’s sovereign assets is granted for a five-year period from the enactment date.
Under the framework, if hostilities cease between the Russian Federation and Ukraine, the authority to seize Russian funds could end earlier if Kyiv receives full compensation for damages, or if Moscow participates in a bona fide international mechanism for compensation. In such a scenario, the president would notify Congress within 120 days of ceasing seizures.
The draft text also bars freezing Russian assets indefinitely and precludes full compensation to Ukraine as an ongoing requirement. It describes seizing and repurposing Russian assets as aligned with the United States’ vital national security interests and consistent with both U.S. and international law.
Following committee approval, the bill would move to the broader House for debate and, if approved, would require Senate support before reaching the President for signing into law. The process envisions a coordinated path through both chambers, culminating in executive enactment if the measure garners the necessary votes.
“Mirror Response”
In the wake of Russia’s military operation against Ukraine, Western nations implemented sanctions and froze assets abroad. Russia’s Finance Minister Anton Siluanov estimated that blocked funds reached approximately $300 billion in March 2022. By the end of October, European leaders signaled a willingness to redirect proceeds from frozen sovereign Russian assets to support Kyiv, with the European Commission preparing concrete proposals.
During a recent US-EU summit, Washington and Brussels agreed to explore the transfer of revenues from frozen Russian assets of private companies to Kyiv. The discussions reflect a broader trend of aligning financial measures with strategic aims in the region.
Russian authorities have repeatedly condemned the freezing of Western reserves as theft and have warned of mirror actions. Vyacheslav Volodin, the Chairman of Russia’s State Duma, asserted that symmetrical measures would be taken if foreign countries continued to use Russian funds. He warned that larger volumes of assets owned by unfriendly states could be redirected if Moscow responds in kind.
Meanwhile, Russia’s finance leadership noted that assets tied to Russian bonds and obligations owed to partners from unfriendly nations are already frozen domestically. The remarks underscored a readiness to respond in a reciprocal manner should Western authorities pursue revenue from Russian reserves, signaling a sustained geopolitical and financial contest over frozen assets and national economic security.