Indy Standard

U.S. Senator Todd Young (R-Ind.) has spearheaded a bipartisan initiative urging the Biden administration to transfer more than $300 billion in seized Russian assets to aid Ukraine. This appeal, made through a letter addressed to Secretary of State Marco Rubio, also calls on allies to take similar actions.

Senators Lindsey Graham (R-S.C.), Richard Blumenthal (D-Conn.), and Tim Kaine (D-Va.) joined Young in this request. The letter emphasizes the Rebuilding Economic Prosperity and Opportunity (REPO) for Ukrainians Act, which was enacted by Congress to assist Ukraine using confiscated Russian sovereign assets.

The senators asked: “How does the Administration view using all financial tools at its disposal to increase pressure on Russia to end the war? Specifically, does the Administration believe that U.S. and EU-held assets should be used as leverage in negotiations with Russia to bring an end to the war?”

The correspondence notes that following Russia's 2022 invasion of Ukraine, approximately $300 billion of Russian central bank assets were frozen globally, with most located within European banks and about $5 billion held in U.S. institutions.

The REPO Act, passed with wide support in April 2024, allows for the seizure or transfer of Russian sovereign assets under U.S. jurisdiction. It aims to convey serious economic consequences for Russia if aggression continues against Ukraine.

In July 2024, G7 nations agreed to utilize windfall profits from interest on these frozen assets for loans supporting Ukraine under the $50 billion G7 Extraordinary Revenue Acceleration Loans initiative. The Treasury Department subsequently disbursed $20 billion in such loans by December 2024.

However, current policy only uses windfall profits rather than seizing actual assets. The senators seek clarity on whether this approach sufficiently deters further aggression and what measures are being taken by the administration and its allies regarding asset seizure for Ukrainian reconstruction.

The group requests a briefing from Secretary Rubio to discuss these issues further as part of their ongoing efforts toward achieving peace in Ukraine.