The United States is weighing the legal framework and partner support needed for the possible use of frozen Russian assets. In this context, White House strategic communications officials have outlined the steps required to move in this direction.
According to policy briefings, there is consideration of channeling a portion of Russia’s blocked assets, totaling roughly 300 million dollars, to bolster Ukraine’s defense capabilities and reconstruction efforts.
Officials emphasized two key prerequisites. First, there is a need for legislative authority from Congress to authorize the president to proceed. Second, it is essential for coalition partners, whose assets were frozen, to align and participate in the effort.
No risk to financial stability
The discussion about the fate of frozen Russian assets has involved the U.S. Treasury and senior officials. They have argued that using these assets abroad would not undermine financial stability, citing the absence of viable alternatives to the dollar, euro, or yen in the current system.
While acknowledging potential risks if currencies were abandoned en masse, officials noted that such a scenario is unlikely, given the unique circumstances where Russia is widely viewed as violating international norms.
Officials say there is a need to find a way to unlock the value of these assets, arguing that doing so would represent a decisive response to Russia’s broader challenge to global stability. By tapping into frozen assets, the United States hopes to convey that continued aggression will not yield victory and could encourage negotiation toward peace.
Senate committee supports the bill
The Foreign Relations Committee in the United States Senate has expressed support for the proposed measure. All but one member voted in favor, with a single dissenting vote. The bill has also received backing from the relevant committee in the House of Representatives.
Under the proposal, the Secretary of State would be empowered to provide additional aid to Ukraine using funds seized from the Bank of Russia and other sovereign Russian assets. The text specifies that such actions should be coordinated with allies and partners, including the G7, the European Union, Australia, and other countries holding Russian assets.
For passage, the bill would require approval from both chambers of Congress and the signature of the president.
EU transfers profits to Ukraine
While the United States debates the seizure of Russian assets, the European Union has decided to transfer profits from frozen assets of the Central Bank of Russia held in European storage to Ukraine.
Officials indicate that legal steps have been taken to secure interest earned from these deposits, noting that the funds do not belong to Russia. The European Commission has stated that profits should be used to support Ukraine, subject to appropriate legal oversight.
In February, the European Council approved measures to ensure that profits exceeding a set threshold from frozen assets are separately recorded and protected. Depositors are prohibited from disposing of the net profits. Brussels has not ruled out using these funds for weapons procurement for Ukraine. Across the EU, more than two-thirds of the Central Bank’s blocked assets remain frozen.
Russian officials have described the freezing of assets held abroad as illegal. The Kremlin has warned that seizures enacted in favor of Ukraine would be viewed as outright theft. A spokesperson for the Russian president characterized American efforts as prompting European actions that could lead to legal and financial consequences for those who follow the path set by the United States.
In response, Russian authorities warned of mirrored measures and potential retaliation. The finance ministry has cautioned that countermeasures would be pursued to address confiscations.