The US is preparing to «confiscate» Russian assets

G. Svidrigailov
Газета.Ru

The US Congressional Budget Office has assessed the likelihood of confiscating frozen Russian assets and calculated that if Bill S.2918 is passed, Washington will be able to seize around $2.5 billion between 2026 and 2028. These funds are expected to be used to support Ukraine.

The Congressional Budget Office (CBO) has presented its calculations on Bill S.2918, which proposes changes to the handling of frozen Russian assets.

According to the agency's estimates, if the bill is passed, the federal government will be able to confiscate approximately $2.5 billion of Russian funds under US jurisdiction in 2026–2028.

The report states that the bill provides for the placement of certain assets in a separate interest-bearing account to further support Ukraine. The CBO notes that one of the existing laws already authorizes the US president to transfer Russian sovereign assets, but there remains “significant uncertainty” as to whether the current administration will exercise this right.

According to US authorities, Russian assets worth about $5 billion are frozen in the US. These funds were blocked after the start of the conflict in Ukraine and the subsequent sanctions. At the G7 and EU levels, a significantly larger amount is being discussed — approximately $300 billion allocated to various Western jurisdictions. It is around these funds that discussions have been going on for several months about possible mechanisms for their use in the interests of Kyiv.

Contents of Bill S.2918 | Bill S.2918 (REPO for Ukrainians Implementation Act) supplements the existing act on support for Ukraine and provides for:

 ● Creating a special account where frozen Russian assets can be transferred;
 ● Accruing interest on these funds and transferring at least $250 million every 90 days to support programs in Ukraine;
 ● Expanding the powers of the US president and the Treasury Department in matters relating to the disposal of Russian assets.

Earlier, Senators John Kennedy, Lindsey Graham, and Richard Blumenthal proposed that the G7 countries and the EU transfer at least $10 billion monthly to Ukraine from Russian assets. The initiative is still under discussion.

Legal disputes and international risks | The legal status of the confiscation of Russian sovereign assets is a matter of debate. The European Parliament's research service notes that the direct seizure of state funds may violate international law and set a precedent that would undermine confidence in financial systems. The head of the European Central Bank, Christine Lagarde, has also previously pointed out such risks.

A number of EU countries have publicly expressed doubts about the legality of the confiscation of Russian sovereign assets. One of the most prominent critics is Belgium, on whose territory a significant portion of the frozen Russian funds is located. Belgian Prime Minister Bart De Wever has stated that the decision to confiscate must be based on solid legal grounds; otherwise, such a step “will be difficult to avoid consequences.”

Italy also expressed concerns. Prime Minister Giorgia Meloni stressed that any actions involving the use of Russian assets must be fully compliant with international law so as not to undermine the stability of the European financial system.

A similar position has been expressed in Germany. The government has previously indicated that the direct seizure of another state's sovereign assets could affect confidence in the euro and create risks for European financial institutions.

In turn, Russia has stated that it will respond harshly if its assets are confiscated abroad. President Vladimir Putin has compared the actions of Western countries regarding Russian assets to “theft” and stated that such measures “have never led to anything good.” Russian authorities have repeatedly warned that attempts to seize assets will lead to lawsuits in international courts.

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