US proposes to confiscate all russian assets to increase pressure on putin

According to two senior administration officials, the Biden administration is making a last-ditch effort to confiscate hundreds of billions of dollars in russian assets as it nears the end of its term, seeing it as a future leverage for Ukraine. However, the U.S. faces considerable skepticism from Europe about seizing $300 billion in frozen russian assets.

The bulk of these funds are held in European banks, while a small portion remains in U.S. financial institutions. As one senior administration official told CNN, confiscating these assets could send a clear message to moscow: “If you want your money back, you're going to have to come to the negotiating table.”

Representatives of the Biden administration have consulted on this topic with President-elect Donald Trump's team, including Marco Rubio, who was appointed Secretary of State, and Mike Volz, the incoming National Security Advisor. According to sources familiar with the situation, Trump's team generally supports this strategy, believing that seizing the money could be an incentive for Russia to negotiate. Trump himself is interested in a quick end to the war, which he believes has been dragged on too long.

However, European partners do not support the idea, expressing fears that direct confiscation of russian funds by banks would be a violation of international law. Sources note that this skepticism in Europe makes any deal unlikely to be concluded before Trump takes office.

U.S. officials suggest that Friedrich Merz, the leader of Germany's Christian Democratic Union party, who may become chancellor, is showing some willingness to consider this strategy. However, he has not yet taken office.

Joe Biden had planned to discuss this issue with Volodymyr Zelenskyy at a meeting in Rome this week, but the event was canceled due to the Los Angeles fire. President Biden discussed some issues by phone with Zelenskyy, but it is unclear whether they touched on the topic of russian funds.

Source: CNN