Bloomberg: White House supports using frozen Russian assets to compensate Ukraine for war damages

The White House supports “in principle” a bill that would allow for a portion of frozen Russian assets to be confiscated and subsequently allocated for Ukraine’s reconstruction, reports Bloomberg, citing a memo the U.S. National Security Council sent to the Senate Foreign Relations Committee in November.

A senior Biden administration official said this is one of several possible methods the U.S. is considering in order to compel Russia to compensate Ukraine for war damages. According to the World Bank’s estimates, Ukraine may need at least $411 billion for its reconstruction.

The National Security Council and the office of Ben Cardin, the chairman of the Senate Foreign Relations Committee, did not comment. The U.S. State Department said that the U.S. government and its G7 partners are “exploring all options consistent with our respective legal systems and international law to aid Ukraine in obtaining compensation from Russia.”

Western countries froze approximately half of the Russian Central Bank’s foreign exchange reserves, around $300 billion, after the full-scale war began in Ukraine. Most of these funds are located in Europe. Since at least fall 2022, E.U. leaders have been discussing the possibility of using these assets.