US: Seizure of Russian assets to rebuild Ukraine illegal

US Treasury Secretary Janet Yellen reported on Wednesday it was not legal for the United States to seize frozen assets from Russia’s central bank to help rebuild Ukraine.

Yellen was referring to an estimated $300 billion in Russia’s central bank assets that have been banned by the United States and its allies as part of their sanctions on  Moscow’s military operation in Ukraine.

There have been discussions among Western allies lately about how to fund Ukraine’s long-term reconstruction and whether frozen Russian assets might play a role.

“I think it’s very natural that given the tremendous devastation in Ukraine and the huge reconstruction costs they will face, we will turn to Russia to pay at least part of the price involved.” Yellen to reporters.

However, she said: “As we begin to look into this, it would not now be legal in the United States for the government to confiscate these assets. This is not allowed by law in the USA.”

Moscow condemned the freezing of its international reserves, saying it could not foresee such a development and that the freeze is essentially theft. Some experts have also called the Russian asset freeze the biggest loss of credibility for the US and its allies, as well as for the Western financial system.

Last month US President Joe Biden asked Congress to give him the power to seize the assets of wealthy individuals believed to have ties to the Kremlin and use them to help rebuild Ukraine.