The confiscation of Russian assets will require decisions by all countries and will not happen quickly, said the US special representative

The process of confiscating Russian assets will require a collective decision from all countries that have frozen funds from the Russian Federation in their financial institutions, making it a time-consuming endeavor. This statement was made by Penny Pritzker, the US Special Representative for the Economic Recovery of Ukraine, during a conference organized by the Ukrainian Chamber in Davos as part of the first day of the World Economic Forum (WEF) in Davos.

“I think if a decision is made, it will be a collective one”, she stated.

According to Pritzker, the resolution of the asset confiscation issue will involve all countries where Russian funds have been frozen, and this will require a legal basis.

“But I think it's a mistake to think that this will be a panacea or that it will happen very quickly”
added the US representative.

Previously, Bloomberg reported that the Biden administration supports legislation allowing the confiscation of certain Russian assets. The White House aims to coordinate this action with its G7 allies, particularly in Europe, where about two-thirds of frozen Russian funds are held.

Subsequently, citing sources in Moscow, Bloomberg reported that Russia was preparing to question all steps taken by the US and the EU regarding the confiscation of frozen central bank assets worth $300 billion to Ukraine.

Details on the withdrawal of Russian assets to Ukraine

In late April 2022, the US House of Representatives approved a bill enabling the confiscation of frozen assets of legal entities and individuals subject to Russian sanctions. The withdrawn funds are intended for additional military and humanitarian assistance to Ukraine.

On June 24, 2022, the Canadian Senate approved a bill allowing the confiscation of Russian property.

According to an internal document of the European Commission dated November 18, 2022, the European Union froze Russian assets worth EUR 68 billion. Currently, the European Union is exploring the possibility of directing part of the frozen assets of the Russian bank toward the reconstruction of Ukraine. Discussions are in the early stages, as such steps require a review of the legal framework.

On November 30, 2023, Ukrainian Prime Minister Denys Shmyhal announced that a draft bill on the seizure of Russia's frozen assets for the reconstruction of Ukraine had been submitted to the United States Congress.

In July, it was reported that European Union leaders supported plans to impose a windfall tax on more than €200 billion of frozen assets of the Central Bank of the Russian Federation to help with Ukraine's reconstruction.

In October, the Estonian authorities approved and submitted to parliament an amendment to the Act on International Sanctions, which, among other things, provides for using frozen Russian assets to compensate for the damage caused to Ukraine as a result of the war.