US and Europe at Odds on Tapping $280 Billion of Russian Assets
- G-7 nations debate ways to use frozen funds to help Ukraine
- Europeans fret over legal, financial risks that US downplays
The US has been leading the push, with Treasury Secretary Janet Yellen this week saying the legal and moral case is strong, and seeking to assuage European doubts.
Photographer: Tuane Fernandes/BloombergThe US and its European allies say they’re determined to use frozen Russian assets to help Ukraine – somehow. In Brazil this week, they’re arguing about the best way to do it without getting into legal or financial jeopardy.
Western nations have frozen about €260 billion ($282 billion) in securities and cash, more than two-thirds of it in the European Union. They all agree those funds should remain off-limits from Russia unless it pledges to help with Ukraine’s reconstruction. But they’re at odds over whether it’s lawful to cross the Rubicon by seizing the assets outright — so the challenge is to squeeze funds out without depleting them.