Call to Allocate Confiscated Russian Banking Funds to Support Ukraine – Sky Bulletin

In a pressing appeal to international partners during the G20 summit in Sao Paulo, Brazil, U.S. Treasury Secretary Janet Yellen emphasized the urgency of repurposing frozen Russian central bank funds to aid Ukraine. The discussion took place on Feb. 27 amid sustained tensions and the ongoing conflict.

Following the outset of the intensified conflict, a sum of approximately $300 billion belonging to the Russian Central Bank was frozen by Western nations and allies.

Yellen stated that it is imperative for there to be a concerted effort to redirect these impounded assets towards supporting Ukraine’s defense and extensive rebuilding efforts—and she declared notable advocacy for such an action.

The ongoing discussions on whether it is lawful to redirect the frozen assets to Ukraine have hampered the execution of this initiative. Complications with the provision of U.S. aid have added a sense of emergency to these talks.

The Treasury Secretary proclaims that there is a comprehensive basis—in terms of international law, economics, and ethics—to advance with the proposed allocation of assets to Ukraine.

A group of international legal experts recently reinforced Yellen’s view through a letter, contending that using the frozen assets of the Russian central bank in aid to Ukraine is legally justifiable in light of the contravention of core international law principles by Russia.

The prospect of empowering Ukraine through seized Russian assets gained momentum when the U.S. Senate Foreign Relations Committee endorsed a bill on January 25, which, if put into effect, would facilitate the conversion of these assets. The White House has shown support for this legislation, potentially offering a workaround to the current financial deadlock in Congress.

Addressing concerns about the potential weakening of the U.S. dollar’s international standing, Yellen assured that such an outcome is highly improbable.

“There are no viable alternatives to the dollar, euro, and yen,” she suggested.

The European Union unveiled new sanctions aimed at Russian central bank profits on February 12, an initiative that Yellen endorses.

A report by the World Bank estimates that Ukraine will need around $486 billion for post-conflict recovery and reconstruction.

During a recent visit to Saudi Arabia, President Volodymyr Zelensky conferred with Saudi Crown Prince Mohammed bin Salman on implementing Ukraine’s peace initiatives, among other bilateral matters, as reported by the Presidential Office on Feb. 27.