Biden in Talks to Use $300 Billion in Frozen Russian Assets to Aid Ukraine

The Biden administration has initiated discussions with allies about utilizing $300 billion in frozen Russian assets to assist Ukraine, reports The New York Times.

According to White House sources, the Biden administration is currently engaged in urgent negotiations with the leaders of the Group of Seven (G7) countries, during which they are examining aspects of a strategy to transfer the frozen Russian assets to Kyiv.

The NYT notes that the United States aims to establish this strategy by February 24, 2024, which marks the second anniversary of the start of Russia's large-scale invasion of Ukraine.

One controversial issue being discussed among negotiators at the level of G7 finance ministers, central bank heads, diplomats, and lawyers is the method for transferring the frozen funds, say sources from the publication. Specifically, the possibility of directly transferring the assets to Ukraine or using them in other ways that benefit the Ukrainian side is under consideration.

Another contentious aspect of the strategy, as reported by the NYT, is the intended use of the funds. Several options are being considered, including allocating the frozen assets for military needs or solely for the purpose of revitalizing the country’s economy.