Biden makes final push to seize Russian funds
Date
1/18/2025 7:07:55 AM
(MENAFN) As his time in office dwindles, US President Joe Biden is reportedly making a final push to convince the European Union to confiscate Russian assets that were frozen following the 2022 escalation of the Ukraine conflict. The US and its allies have blocked approximately $300 billion in Russian sovereign funds, primarily held in Euroclear, based in Brussels.
The EU has hesitated to fully seize the funds, fearing reputational damage and potential Russian retaliation that could destabilize the European economy. Moscow has labeled the freezing of its assets as "illegal" and warned of consequences, threatening to seize over $300 billion in Western assets within Russia.
The Biden administration is urging the EU to transfer these frozen assets into a special escrow account, which could be released if peace talks between Russia and Ukraine succeed. Biden’s team believes this could provide leverage over Moscow, and sources suggest that President-elect Donald Trump’s incoming team may also support this strategy.
Despite US pressure, EU officials remain skeptical, with concerns that seizing the funds could violate international law. Biden was expected to discuss the issue with Italy’s leadership and Ukrainian President Zelensky but canceled the trip due to the wildfires in Los Angeles. Meanwhile, Zelensky has called for the complete appropriation of Russia's frozen funds to support Ukraine's domestic needs and weapons procurement.
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