Biden administration seeks expanded powers to sell seized assets and support reconstruction efforts

The Biden administration is advocating for new legislation to streamline the process of seizing and selling the assets of Russian oligarchs. The goal is to use proceeds from these sales to support Ukraine’s recovery from the war while increasing pressure on Russia to end its invasion.

On Wednesday, the House of Representatives approved the Asset Seizure for Ukraine Reconstruction Act with minimal opposition, sending the bill to the Senate. This legislation would allow the US government to liquidate assets from sanctioned Russian individuals, with funds exclusively earmarked for Ukraine’s post-war rebuilding, military support, and humanitarian aid.

The administration’s proposal goes further by creating a new criminal offence for those who knowingly benefit from assets linked to corrupt dealings with Russia. Additionally, the proposal would target property involved in sanctions evasion and speed up court reviews of asset forfeitures.

Currently, only the Justice Department determines how seized funds are spent under federal law, creating bottlenecks and delays. The Biden administration hopes that this new legislation will grant greater flexibility and enable faster response times.

According to the US Treasury Department, assets worth over $1 billion — including yachts, aircraft, and bank accounts — have already been frozen or sanctioned. However, the challenges of maintaining and liquidating these assets are substantial. Former investigations have revealed over 2,000 suspicious transactions linked to Russian oligarchs, with just 271 cases forwarded to law enforcement and intelligence.

One key exclusion from the current legislative proposal concerns Russian Central Bank assets, estimated at over $600 billion and frozen by US and allied sanctions. Treasury Secretary Janet Yellen has indicated that using these funds for Ukraine would require international consensus and careful consideration.

While the new law would speed up the sale and repurposing of assets, experts caution that the process of liquidating these holdings and using the proceeds could take years. Nonetheless, the administration maintains that these measures are vital to supporting Ukraine and deterring further Russian aggression.