The aggression and devastation inflicted upon Ukraine by Russia’s illegal war continue to raise alarm worldwide. The United States and its G7 allies have taken action by freezing over $300 billion in Central Russian Bank assets through lawful sanctions regimes. However, it is essential to explore the next crucial step – the transfer of these frozen funds to Ukraine for its defense and reconstruction.
Investigating the Legal, Practical, and Moral Dimensions:
The Renew Democracy Initiative, in collaboration with experts from various organizations, conducted an extensive study to address the legal, practical, and moral aspects of transferring Russia’s assets to Ukraine. The resulting report, spanning nearly 200 pages, debunks the purported legal doubts surrounding this action.
Unleashing the Presidential Authority:
Under existing legislation, President Biden possesses the authority to compel the transfer of Russia’s property to Ukraine during international emergencies. Notably, President George H.W. Bush utilized a similar legal basis to transfer Iraq’s frozen assets to the UN Compensation Commission following Iraqi aggression. Thus, there is a clear precedent for President Biden to proceed with the transfer of Russian assets to Ukraine.
Dispelling Misconceptions:
Critics have raised concerns about infringing on Russia’s sovereignty and the risk of de-dollarization. However, our report dismantles these objections. Transferring Russia’s assets is grounded in international law and principles of sovereign immunity. Moreover, the potential harm to U.S. economic interests due to de-dollarization is overstated, given the dollar’s structural advantages and the absence of viable substitutes.
The Pitfalls of Halfway Measures:
While some support the transfer of profits or interest generated by Russia’s frozen assets, leaving the principal untouched, this compromise falls short. The estimated $3 billion annually pales in comparison to Ukraine’s immediate defense and reconstruction needs. Furthermore, transferring only the interest and profits ignores the fact that Russia maintains ownership claims over these earnings, similar to its claims on the principal. To secure justice for Ukraine, a complete transfer is required.
The Cost of Inaction:
Choosing inaction is not a viable option when faced with the destruction of Ukraine. In this critical moment, failure to act equates to appeasement and encouragement of further aggression globally. The repercussions of passivity far outweigh the perceived obstacles to the complete transfer of frozen Russian assets to Ukraine.
Market Capital Research 