Wilmington, Del. (June 22, 2023) – There are over $300 billion dollars' worth of Russian assets from Russia's central bank that have been frozen by the United States and its allies, though it will take further authority from Congress to attach the assets that have been seized or frozen. Seizures by the Russian Elites, Proxies, and Oligarchs Task Force (REPO Task Force), as part of a coordinated multilateral effort, are authorized in the U.S. under the International Emergency Economic Powers Act (IEEPA), 50 U.S.C. §§1701–1707. However, the IEEPA does not allow the U.S. Government to take ownership over the assets (as it is not a "vesting" statute), unless the U.S. is "engaged in armed hostilities or has been attacked by a foreign country or foreign nationals." This is not the current state of the conflict in Ukraine.
Now, both the House and Senate have endorsed a bill with a familiar acronym - the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act (REPO Act). This bipartisan legislation would bridge the gap between the work of the REPO Task Force and answer the question of what to do with the seized assets. According to a statement issued by the Senate Foreign Relations Committee, members of Congress who joined together in introducing the bill included Senator and Ranking Republican of the Senate Foreign Relations Committee Jim Risch (R-ID), House Foreign Affairs Committee Chairman Michael McCaul (R-TX), Senator Sheldon Whitehouse (D-RI), and Congressional Ukraine Caucus Co-Chair Representative Marcy Kaptur (D-OH).
The REPO Act would authorize the President to transfer seized assets into funds for Ukraine for damages resulting from the Russian invasion. Funds would fuel the reconstruction and rebuilding in Ukraine, and make resources available for humanitarian efforts. The proposed legislation would also condition the release of frozen Russian assets on a Russian withdrawal. In addition, the proposed REPO Act includes an annual supplemental increase of $15 million to the U.S. State Department's Office of Sanctions Coordination to further interdiction efforts in countries cooperating with U.S. sanctions measures.
Moreover, the REPO Act would create a Ukraine Support Fund – consisting of Russian sovereign assets in U.S. financial institutions – that would be administered by the Secretary of State in consultation with the Administrator of the U.S. Agency for International Development. Sanctions enforcement and seizures in partner countries would be funded by the Common Ukraine Fund, which, in turn, would be funded by both the Ukraine Support Fund and contributions from U.S. allies that have confiscated Russian assets in foreign jurisdictions.
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