Follow us on social

Biden officials want Russian frozen assets to fund Ukraine war

Biden officials want Russian frozen assets to fund Ukraine war

Not only will this prolong the conflict, but rock confidence in the Western-led world economic system

Analysis | QiOSK

On Tuesday, U.S. Treasury Secretary Janet Yellen strongly endorsed efforts to tap frozen Russian central bank assets in order to continue to fund Ukraine.

“There is a strong international law, economic and moral case for moving forward,” with giving the assets, which were frozen by international sanctions following Russia’s 2022 invasion of Ukraine, to Kyiv, she said to reporters before a G7 meeting in San Paulo.

Furthermore on Wednesday, White House national security communications adviser John Kirby urged the use of these assets to assist the Ukrainian military.

This adds momentum to increasing efforts on Capitol Hill to monetize the frozen assets to assist the beleaguered country, including through the “REPO Act,” a U.S. Senate bill which was criticized by Senator Rand Paul (R-Ky.) in a recent article here in Responsible Statecraft. As Paul pointed out, spending these assets would violate international law and norms by the outright seizure of sovereign Russian assets.

In the long term, this will do even more to undermine global faith in the U.S.-led and Western-centric international financial system. Doubts about the system and pressures to find an alternative are already heightened due to the freezing of Russian overseas financial holdings in the first place, as well as the frequent use of unilateral sanctions by the U.S. to impose its will and values on other countries.

The amount of money involved here is considerable. Over $300 billion in Russian assets was frozen, mostly held in European banks. For comparison, that’s about the same amount as the entirety of Western aid committed from all sources to Ukraine since the beginning of the war in 2022 — around $310 billion, including the recent $54 billion in 4-year assistance just approved by the EU.

Thus, converting all of the Russian assets to assistance for Ukraine could in theory fully finance a continuing war in Ukraine for years to come. As political support for open-ended Ukraine aid wanes in both the U.S. and Europe, large-scale use of this financing method also holds the promise of an administrative end-run around the political system.

But there are also considerable potential downsides, particularly in Europe. European financial institutions hold the overwhelming majority of frozen Russian assets, and any form of confiscation could be a major blow to confidence in these entities. In addition, European corporations have significant assets stranded in Russia which Moscow could seize in retaliation for the confiscation of its foreign assets.

Another major issue is that using assets to finance an ongoing conflict will forfeit their use as leverage in any peace settlement, and the rebuilding of Ukraine. The World Bank now estimates post-war rebuilding costs for Ukraine of nearly $500 billion. If the West can offer a compromise to Russia in which frozen assets are used to pay part of these costs, rather than demanding new Russian financing for massive reparations, this could be an important incentive for negotiations.

In contrast, monetizing the assets outside of a peace process could signal that the West intends to continue the conflict indefinitely.

In combination with aggressive new U.S. sanctions announced last week on Russia and on third party countries that continue to deal with Russia, the new push for confiscation of Russian assets is more evidence that the U.S. and EU intend to intensify the conflict with Moscow using administrative mechanisms that won’t rely on support from the political system or the people within them.


Janet Yellen, United States Secretary of the Treasury. (Reuters)
Analysis | QiOSK
Trump's most underrated diplomatic win: Belarus
Top image credit: Brian Jason and Siarhei Liudkevich via shutterstock.com

Trump's most underrated diplomatic win: Belarus

Europe

Rarely are foreign policy scholars and analysts blessed with as crystalline a case study in abject failure as the Western approach to Belarus since 2020. From promoting concrete security interests, advancing human rights to everything in between, there is no metric by which anything done toward Minsk can be said to have worked.

But even more striking has been the sheer sense of aggrieved befuddlement with the Trump administration for acknowledging this reality and seeking instead to repair ties with Belarus.

keep readingShow less
These Israeli-backed gangs could wreck the Gaza ceasefire
Ashraf al-Mansi walks in front of members of his Popular Army militia. The group, previously known as the Counter-Terrorism Service, has worked with the Israeli military and is considered by many in Gaza to be a criminal gang. (Via the Facebook page of Yasser Abu Shabab)

These Israeli-backed gangs could wreck the Gaza ceasefire

Middle East

Frightening images have emerged from Gaza in the week since a fragile ceasefire took hold between Israel and Hamas. In one widely circulated video, seven blindfolded men kneel in line with militants arrayed behind them. Gunshots ring out in unison, and the row of men collapse in a heap as dozens of spectators look on.

The gruesome scenes appear to be part of a Hamas effort to reestablish control over Gaza through a crackdown on gangs and criminal groups that it says have proliferated during the past two years of war and chaos. In the minds of Israel and its backers, the killings reveal Hamas’ true colors — and represent a preview of what the group may do if it’s allowed to maintain some degree of power.

keep readingShow less
Poland farmers protest EU
Top photo credit: Several thousand people rally against a proposed EU migration scheme in Warsaw, Poland on 11 October, 2025. In a rally organized by the opposition Law and Justice (PiS) party thousands gathered to oppose the EU migration pact and an agriculture deal with Mercosur countries. (Photo by Jaap Arriens / Sipa USA)

Poland’s Janus face on Ukraine is untenable

Europe

Of all the countries in Europe, Poland grapples with deep inconsistencies in its approach to both Russia and to Ukraine. As a result, the pro-Europe coalition government of Prime Minister Donald Tusk is coming under increasing pressure as the duplicity becomes more evident.

In its humanitarian response to Ukraine since the war began in 2022, Poland has undoubtedly been one of the most generous among European countries. Its citizens and NGOs threw open their doors to provide food and shelter to Ukrainian women and children fleeing for safety. By 2023, over 1.6 million Ukrainian refugees had applied for asylum or temporary protection in Poland, with around 1 million still present in Poland today.

keep readingShow less

LATEST

QIOSK

Newsletter

Subscribe now to our weekly round-up and don't miss a beat with your favorite RS contributors and reporters, as well as staff analysis, opinion, and news promoting a positive, non-partisan vision of U.S. foreign policy.