US prepares to confiscate $2.5 billion worth of Russian assets to support Ukraine
15 November 2025 09:15
The Congressional Budget Office has presented estimates for the bill S.2918, which would change the procedure for handling frozen Russian assets.
According to the agency, if the document is adopted, the federal government will be able to confiscate about $2.5 billion of Russian funds under American jurisdiction in 2026-2028, "Komersant Ukrainian" reports.
The report says that the bill provides for the placement of part of the assets in a separate account with interest to further support Ukraine. The CBO notes that one of the existing laws already authorizes the US president to transfer sovereign assets to Russia, but there is “considerable uncertainty” as to whether the current administration will exercise this right.
According to the US authorities, Russian assets worth about $5 billion have been frozen in the US. These funds were blocked after the outbreak of the war in Ukraine and subsequent sanctions. The G7 and the EU are discussing a much larger amount – about $300 billion placed in various Western jurisdictions. It is around these funds that discussions have been going on for several months about possible mechanisms for their use in favor of Kyiv.
Content of the draft law S.2918
The document S.2918 (REPO for Ukrainians Implementation Act) supplements the existing act on support for Ukraine and provides for
- creation of a special account to which frozen Russian assets can be transferred;
- Accrual of interest on these funds and transfer of at least $250 million every 90 days to support programs for Ukraine;
- Expanding the powers of the US President and the Treasury Department in the disposal of Russian assets.
Earlier, Senators John Kennedy, Lindsey Graham, and Richard Blumenthal proposed that the G7 countries and the EU transfer at least $10 billion a month to Ukraine from Russian assets. The initiative is still being discussed.
Legal disputes and international risks
The legal status of the confiscation of Russian sovereign assets is a matter of debate. The European Parliament’s European Research Service notes that direct seizure of state funds may contravene international law and set a precedent that would reduce confidence in financial systems. The head of the European Central Bank, Christine Lagarde, has previously pointed to such risks.
A number of EU countries have publicly expressed doubts about the legality of the confiscation of Russian sovereign assets. One of the most prominent critics is Belgium, where a significant portion of the frozen Russian funds is located. Belgian Prime Minister Bart de Wever stated that the decision to confiscate must be based on solid legal grounds, otherwise it is “difficult to avoid consequences” after such a step.
Italy also expressed concerns. Prime Minister Giorgia Maloni emphasized that any action to use Russian assets must fully comply with international law in order not to undermine the stability of the European financial system.
A similar position is voiced in Germany. The government has previously pointed out that the direct seizure of sovereign assets of another state could affect confidence in the euro and pose risks to European financial institutions.
