Biden endorses proposal to direct seized Russian assets to support Ukraine

The Biden administration on Thursday gave a big boost to legislation sponsored by Sens. Michael Bennet (D-Colo.) and Rob Portman (R-Ohio) that would direct funds from seized Russian assets to support Ukrainian refugees and reconstruction.  

The White House says President Biden’s request for $33 billion in more aid for Ukraine will be paired with a request for a comprehensive legislative package that will enhance the federal government’s authority to hold Russian oligarchs accountable for Russian President Vladimir Putin’s invasion of Ukraine.  

A fact sheet circulated by the White House Thursday says the proposed package would improve the ability of U.S. agencies to use forfeited oligarch funds to remediate harm inflicted on Ukraine by Russian forces.  

The departments of Justice, Treasury and State would work in concert to use funds seized because of corruption or sanctions and export control violations to pay for humanitarian assistance, according to the White House summary.   

The proposal would also allow the federal government to seize property related to sanctions violations, the summary states. Under current law the United States cannot forfeit property used in connection with sanctions violations.  

It gives new political momentum to a bipartisan proposal introduced last month by Bennet and Portman requiring the Department of Justice to direct any funds resulting from the disposal of seized Russian assets to support Ukrainian refugees and reconstruction.  

The bill is called the Repurposing Elite Luxuries into Emergency Funds for Ukraine Act, or the RELIEF Act.  

The senators introduced the legislation after Attorney General Merrick Garland announced the formation of Task Force KleptoCapture, an interagency task force focused on enforcing sanctions, export restrictions and other countermeasures imposed on Putin’s allies and partners.  

Bennet applauded Biden’s support for his bill.   

“We must hold Russian oligarchs accountable for enabling Putin’s egregious, lawless war,” Bennet said in a statement.  

“I look forward to working with President Biden, Attorney General Garland, and my Senate colleagues to get this done for the Ukrainian people, who have inspired the world with their resilience and resolute defense of democracy,” he said.  

The RELIEF Act would direct money from seized Russian assets to a new Ukrainian relief fund and direct the fund to support Ukrainian refugees and Ukraine’s reconstruction.  

Under the bill, the fund would he administered by the Department of State in consultation with the U.S. Agency for International Development, and the administration would have to make regular reports to Congress on assets seized, funds transferred and assistance delivered to Ukraine.