Young, Colleagues Ask Administration to Transfer Frozen Russian Assets

WASHINGTON – U.S. Senator Todd Young (R-Ind.) led a bipartisan group of Senate colleagues in sending a letter to Secretary of State Marco Rubio asking the administration to transfer – and push allies to transfer – more than $300 billion of seized Russian assets to help Ukraine. 

In addition to Senator Young, U.S. Senators Lindsey Graham (R-S.C.), Richard Blumenthal (D-Conn.), and Tim Kaine (D-Va.) joined the letter.

The letter references the Rebuilding Economic Prosperity and Opportunity (REPO) for Ukrainians Act, a tool passed by Congress to provide additional assistance to Ukraine using assets confiscated from the Central Bank of the Russian Federation and other sovereign assets of the Russian Federation.

“How does the Administration view using all financial tools at its disposal to increase pressure on Russia to end the war? Specifically, does the Administration believe that U.S. and EU-held assets should be used as leverage in negotiations with Russia to bring an end to the war?” the senators wrote.

Text of the letter can be found here and below:

Dear Secretary Rubio,

Following Russia’s 2022 invasion of Ukraine, the United States and its allies froze Russian central bank assets held in their respective banking systems. Those frozen funds total nearly $300 billion across the globe, with the vast majority residing within the European banking system. Only $5 billion is held in U.S. financial institutions. 

In April 2024, the Rebuilding Economic Prosperity and Opportunity (REPO) for Ukrainians Act became law, with broad support in both the House and the Senate. Section 103 of the Act authorizes the President to “seize, confiscate, transfer, or vest any Russian … sovereign assets, in whole or in part, and including any interest or interests in such assets, subject to the jurisdiction of the United States,” and entrusts you with sole power to disburse any such seized assets. The Act sent a strong signal to President Putin that he risks serious consequences for Russia’s economy if he continues his aggression against Ukraine. 

In July 2024, the G7 agreed to use windfall profits from the interest on Russia’s frozen assets to back loans to Ukraine as part of the $50 billion G7 Extraordinary Revenue Acceleration (ERA) Loans initiative. We, along with others, welcomed the Treasury Department’s December 2024 decision to disburse $20 billion in ERA loans to Ukraine. However, we understand that the current policy of the United States and of our EU and G7 partners is to use only the windfall profits—not to seize the assets themselves. We seek to understand the Administration’s position on this issue, whether the current policy goes far enough to dissuade further Russian aggression, and what steps the Administration is taking to encourage our allies to take similar steps. Moreover, we welcome an understanding of the Administration’s plans for using the REPO Act—to include the seizure of Russian sovereign assets—to increase pressure on Russia to negotiate an end to the war in accordance with the President’s public statements, along with any plans to use the assets for Ukraine’s reconstruction.

We request a briefing to discuss the following questions:

1. How does the Administration view using all financial tools at its disposal to increase pressure on Russia to end the war?
2. Specifically, does the Administration believe that U.S. and EU-held assets should be used as leverage in negotiations with Russia to bring an end to the war?  If so, how?
3. What is the Administration’s position on confiscating U.S.-held Russian sovereign assets to help pay for Ukraine’s reconstruction?
4. Does the Administration intend to develop a strategy to encourage the EU, the G7, and other Allies to leverage Russian sovereign assets under their control to pay for Ukraine’s security and reconstruction?
5. How will the Administration safeguard the use of any payments made to Ukraine under the REPO Act to ensure the funds are spent in a manner that prevents waste, fraud, and abuse?
6. Does the Administration support Ukraine using Russian sovereign assets under U.S. control to purchase defense and security equipment?  If so, is there a mechanism for facilitating those purchases?

As Congress seeks to support your efforts to bring this war to an end, it is our aim to understand the Administration’s thinking on this important issue. We look forward to working with you to ensure a lasting peace in Ukraine.