Senator Eyes Giving Frozen Russian Assets to Ukraine to Buy Arms
Sen. John Kennedy, R-La., announced Sept. 17 that he plans to introduce bipartisan legislation to seize about $300 billion in frozen Russian assets and make the funds available to Ukraine to better equip its military.
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While the Group of Seven nations have already agreed to give Ukraine loans that will be repaid with interest earned on the immobilized Russian assets (see 2406140056), transferring the underlying assets to Ukraine would allow the embattled country to buy more firepower and pressure Russia to reach a peace deal, Kennedy said in a Senate floor speech.
“Ukraine can use that money to buy missiles to take out every single [oil] refinery in Russia [and] cut off their cash flow,” Kennedy said. “Ukraine can use that money to buy missiles to take out every single weapons production plant in Russia, every single one, and make President [Vladimir] Putin understand that there is going to be a cost for him prosecuting this war.”
While U.S. allies would have to approve such transfers, as most of the $300 billion in frozen Russian assets is located in Europe, and while some might be concerned that a seizure could violate international law, Kennedy believes they would ultimately support such a move amid mounting frustration with Putin’s increased attacks on Ukraine and refusal to end the war. "We want to follow the rules, even if Russia doesn't, but the time has come to look reality in the eye and no longer deny it," he said.
While President Donald Trump has said he is prepared to increase sanctions on Russia if U.S. allies stop buying Russian oil (see 2509150008), Kennedy believes that weaning all of those countries off that oil could take months. In the meantime, the asset seizure and transfer could proceed, he said.
Kennedy said the legislation, which he's still drafting, would provide the money to Ukraine in tranches. He intends to introduce it with Sens. Lindsey Graham, R-S.C.; Richard Blumenthal, D-Conn.; Sheldon Whitehouse, D-R.I., and possibly others. A provision to seize Russian assets held by U.S. financial institutions is included in a bill the House Financial Services Committee approved in July (see 2509160044).