The bill would give the executive branch the powers it needs to confiscate Russian assets.
Biden's administration supported the confiscation of Russian assets in favour of Ukraine
The administration of US President Joe Biden has supported a draft law that allows the confiscation of about $300 billion from frozen Russian assets and directs these funds to Ukraine's reconstruction.
A National Security Council memorandum to the Senate Foreign Relations Committee (FRC) states that the bill would provide the executive branch with the authority necessary to confiscate Russian sovereign assets in favour of Ukraine.
It is noted that the White House wants to coordinate this step with G7 allies, particularly in Europe, where about $200 billion of the Russian Federation's frozen assets are kept.
Together with our G7 partners, we are exploring all options consistent with our respective legal systems and international law to help Ukraine obtain compensation from Russia, the US State Department said in a statement.
Congressmen Jim Risch and Sheldon Whitehouse are the authors of the "Act on Restoration of Economic Prosperity and Opportunities for Ukrainians".
Democrats and Republicans in the committee disagree on two critical points of the bill. The proposed law requires Biden to coordinate with the G7 to seize assets but does not require their approval, which could allow the US to take action unilaterally.
It also contains language intended to prevent Russia from challenging the seizure in United States courts, which could be potentially vulnerable to constitutional challenges.
The White House was initially ambivalent about introducing a requirement to coordinate with the G-7 but later emphasized the need to act together with allies.
What is known about the transfer of Russian assets to Ukraine
The USA offered the G7 countries to confiscate $300 billion of frozen Russian assets for the benefit of Ukraine. They want to agree on the corresponding plan before the second anniversary of the Russian invasion of Ukraine.
As Prime Minister Denys Shmyhal noted recently, the US, the EU, and other countries have already come close to solving the above issue.
There are already the first precedents of changes to legislation providing for money transfer mechanisms. Currently, it is important to reduce it to a single, clear system, which will involve the EU and G7 countries, Ukraine's PM said.
