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5.2.4 Gross international reserves
The U.S. Senate Foreign Relations Committee voted 20 to 1 on January 24 in support of the Rebuilding Economic Prosperity and Opportunity (REPO) for Ukrainians Act. If, as expected, it passes the full Senate and House of Representatives and is signed into law by President Joe Biden, the law gives the president the right – but does not oblige him – to seize frozen Russian assets, including sovereign Central Bank funds. This right would remain in place for five years, or until the end of hostilities between Russia and Ukraine.
● Any funds seized by the U.S. under the law would be transferred to a special government account which can pay for the restoration of Ukraine – but the money cannot be used to pay any military expenses.
● In addition, the legislation requires the president to attempt to secure a global agreement on Russian assets. This stipulation accepts the reality of the current situation: there aren't many Russian assets in the U.S., with at least two-thirds of them held in European Union countries. Switzerland has already stated that it will not confiscate assets for a Ukraine reconstruction fund.
● Perhaps more significantly, the Foreign Relations Committee also backed the Transferring Illicit Assets to Ukraine Act . This law would allow the U.S. Department of Justice to not only freeze, but also seize, assets of individuals and companies found to be violating sanctions against Russia, or which are themselves under sanctions. While this is unlikely to raise significant funds to support Ukraine, it adds to the consequences for potential violations of trade and financial embargoes
63 RUSSIA Country Report February 2024 www.intellinews.com