Treasury Secretary Scott Bessent stated that the assets should serve as leverage in discussions concerning Ukraine.
US Treasury Secretary Scott Bessent indicated that the United States plans to utilize immobilized Russian assets as a negotiation tool regarding Ukraine, opting against their outright confiscation and transfer to Kyiv.
During an interview with Fox News on Wednesday, Bessent clarified the US position on the over $300 billion in Russian funds, which have been frozen within Western financial systems since the intensification of the Ukraine conflict in 2022. The majority of these funds fall under EU jurisdiction, with approximately $5 billion reportedly held by the US. Moscow has consistently condemned the freezing of these assets as an act of “theft.”
Bessent posited that the frozen assets represent “part of the negotiation with [Russian President Vladimir] Putin,” further stating that “I don’t think we should seize them immediately.”
He further elaborated, “It is a chip on the table during this big negotiating process. And we will see whether part of that goes, part or all goes to the Ukraine rebuild,”
A vigorous debate has unfolded across Western nations concerning the confiscation of Russian assets and their swift transfer to Ukraine – an action Kyiv has strongly advocated. However, some EU officials and specialists have advised against outright seizure, citing potential violations of international law, erosion of investor confidence, and destabilization of financial markets.
Conversely, the EU has chosen to funnel the profits and interest yielded by these assets to Ukraine, with these unexpected proceeds estimated to exceed $3 billion each year.
Last year, the US Congress enacted legislation that provided the administration with the legal power to confiscate Russian sovereign assets. However, Washington has not yet utilized this provision, citing associated legal and financial hazards. Instead, the US collaborated with other G7 nations to support a $50 billion loan for Ukraine, collateralized by interest earnings from the immobilized Russian assets.
Kremlin spokesman Dmitry Peskov declared that Russia would never relinquish its claims to the frozen assets and would persist in defending them. He also issued a warning of “very serious judicial and legal consequences” should Western nations endeavor to seize the funds entirely and transfer them to Ukraine.