U.S., Canada, and EU Consider Seizing Frozen Russian Assets for Ukraine Reconstruction

Unprecedented move faces complex legal challenges, including potential violation of state sovereign immunity, as Russian officials threaten legal action.

• Financial institutions in the United States and Europe hold about $300 billion worth of Russian state assets that were frozen at the start of the war, which could be used to pay for Ukraine's reconstruction.
• The U.S. Senate has advanced legislation that would authorize the seizure of frozen Russian state funds, a move backed by the Biden administration.
• Canada is already working on a similar law, and the European Union has agreed in principle to the idea of seizing at least the interest earned from frozen Russian assets for Ukraine’s reconstruction.
• Such a move would be unprecedented in its scope and presents a complex set of legal challenges, including potential violation of the principle of state sovereign immunity.
• Russian officials have threatened legal action in courts in Europe and the United States if the country’s assets are seized.

3 Articles

Foreign Policy Financial Post Associated Press