Frozen Russian assets won't replace US aid to Ukraine - Treasury Secretary Yellen

US Treasury Secretary Janet Yellen said this, Bloomberg reports.

“I don’t see a real substitute for Congress providing Ukraine the aid it needs this year. I don’t think anyone can fill that gap,” Yellen said.

According to Yellen, the total amount of aid to Ukraine seems insufficient, even after the EU offered very significant funding and Japan allocated $12.1 billion. According to her, these funds can help the state in the near future, while Kyiv is waiting for more comprehensive support.

The US Treasury Secretary emphasized that Ukraine could face serious difficulties without a $60 billion aid package.

What is known about the confiscation of Russian assets

On November 30, the US Senate introduced a bill to confiscate Russian assets. On January 11, the Biden administration supported the confiscation of Russian assets for transfer to Ukraine.

Meanwhile, the European Commission has a plan to raise EUR 15 billion from Russia's frozen assets to be used as financial aid for Ukraine.

At the same time, Russia has estimated that the West could lose assets and investments worth at least $288 billion if it confiscates frozen Russian assets to help rebuild Ukraine, and said Moscow would retaliate.

On January 23, Belgian Ambassador to the United States Jean-Arthur Régibeau said that Western countries should make a collective decision to confiscate frozen Russian assets, most of which are stored in the Brussels-based Euroclear settlement center.

On January 24, a US Senate committee approved a bill to confiscate Russian assets and transfer them to Ukraine.

On January 30, the Political Affairs Committee of the Parliamentary Assembly of the Council of Europe adopted a draft resolution that provides for the confiscation of frozen Russian assets and their transfer to a new fund for Ukraine's recovery.

Europe holds €191 billion of Russia's €260 billion in frozen foreign assets, which generated €4.4 billion in profit in 2023, and is willing to transfer them to Ukraine.

The G7 countries and the EU are discussing a plan to use the frozen assets of the Russian central bank worth more than $250 billion as collateral to finance Ukraine's recovery.

On February 12, the EU Council decided to regulate the future mechanism for using profits from frozen Russian assets in the EU in favor of Ukraine.

British Prime Minister Rishi Sunak said that Western countries should be bolder in confiscating Russian assets that they froze after Russia's full-scale invasion of Ukraine.