US plans stance on frozen Russian assets

(MENAFN) The US plans to use frozen Russian assets as leverage in negotiations over Ukraine rather than confiscating and transferring them directly to Kiev, Treasury Secretary Scott Bessent stated. Speaking to Fox News, Bessent clarified the US position on the more than $300 billion in Russian funds frozen in Western banks since the conflict escalated in 2022. Most of these assets are held within the EU, while the US controls about $5 billion. Russia has condemned the freezes as theft.

Bessent described the frozen assets as a “bargaining chip” in ongoing talks with Russian President Vladimir Putin and emphasized that the US does not intend to seize the funds immediately. Instead, he said, their fate will be determined as part of broader negotiations, possibly contributing to Ukraine’s reconstruction.

The idea of confiscating Russian assets quickly has sparked intense debate in the West. While Ukraine has pushed for rapid seizure, some European leaders and experts warn that such actions could breach international law, harm investor confidence, and disrupt financial markets. Consequently, the EU has chosen to channel profits and interest from the frozen assets—estimated at over $3 billion annually—to Ukraine.

Though US Congress passed legislation last year allowing the government to seize Russian sovereign assets, the administration has held back, concerned about legal and financial risks. The US and G7 countries have instead supported a $50 billion loan to Ukraine, secured by interest earned on these frozen funds.

Kremlin spokesman Dmitry Peskov insisted that Russia will vigorously defend its rights to the frozen assets and warned of serious legal repercussions if the West moves to confiscate them and hand them to Ukraine.

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