The US House of Representatives has passed a bill that would allow the administration of US President Joe Biden to confiscate billions of dollars’ worth of Russian assets sitting in US banks and transfer them to Ukraine for reconstruction.
The bill, known as the “REPO Act,” passed the House on Monday and prompted Russia to consider confiscating Western assets in response.
A top Russian lawmaker, Vyacheslav Volodin, said that the bill is a provocation and that it could damage the European economy, as over 75% of Russia’s frozen assets are held in the EU.
Volodin said that of the $280 billion of Russian assets frozen abroad, only $5 to $6 billion was in the United States, while about $224 billion was in the European Union.
The Russian lawmaker warned that the EU could follow the US’s lead and confiscate Russian assets, which could have devastating consequences for the European economy.
The US and its allies have imposed sweeping sanctions on Russia in response to its invasion of Ukraine, including freezing the assets of Russian banks and individuals.
The REPO Act would allow the Biden administration to use these frozen assets to help Ukraine rebuild its economy and infrastructure, which have been devastated by the war.
However, Russia has warned that it will retaliate against any attempts to confiscate its assets, and it could seize Western assets in response.
The confiscation of Western assets by Russia would be a significant escalation of the conflict and could further damage the global economy.
The US and its allies are urging Russia to end its aggression in Ukraine and to withdraw its forces from the country.
However, Russia has shown no signs of backing down, and the conflict is likely to continue for some time.
