U.S., Partners Explore Seizing Russian Assets to Back Loans to Ukraine

The U.S. and its partners are exploring ways to use some of the $300 billion in frozen Russian central bank reserves to back loans to Ukraine, one of a series of ideas that Western officials are considering as they struggle to agree on a method to seize Russian funds without spooking international investors. 

With Congress blocking funding for Ukraine, there is renewed impetus in Washington to find other sources of long-term financial support. After the outbreak of war, billions of dollars in Russian foreign currency reserves, gold and government bonds were frozen across the U.S., Europe and Japan to ensure they weren’t used to fund its illegal invasion.