The White House on Thursday announced a proposal to allow U.S. authorities to liquidate the assets of Russian oligarchs and donate the proceeds to Ukraine, seeking what appears to be broad new legal powers to expand America’s financial war on the Kremlin amid bipartisan pressure in Congress.
The White House has not revealed the legislative text behind its Russian oligarchs proposal but said the proposal “would improve” the federal government’s ability to send seized funds to Ukraine. Under current law, the United States can typically only freeze — not seize or liquidate — the assets of sanctioned individuals. Civil liberties groups had raised concerns that prior congressional proposals to do so ran afoul of constitutional protections by allowing federal law enforcement to circumvent judicial procedure. It was not immediately clear how the White House would seek to change existing statute without violating those protections.
“This package of proposals will establish new authorities for the forfeiture of property linked to Russian kleptocracy, allow the government to use the proceeds to support Ukraine, and further strengthen related law enforcement tools,” the White House said in a fact sheet.
The White House said its plan for liquidating Russian oligarch assets was released in close coordination with the Treasury Department, State Department, and Commerce Department. Attorney General Merrick Garland previously told congressional lawmakers that he supports the efforts to repurpose seized Russian funds to Ukraine. But even some senior Biden administration officials had emphasized the need for caution around a potentially significant change in precedent to U.S. seizure law. Treasury Secretary Janet L. Yellen told reporters last week that lawmakers needed to be careful when she was asked about a plan to give to the Ukrainians billions of dollars in seized Russian bank reserves.
“I would say that is very significant, and it is one that we would carefully need to think through the consequences of before undertaking it,” Yellen told reporters last week. “I wouldn’t want to do so lightly, and it’s something that I think our coalition and partners would need to feel comfortable with and be supportive of.”
“The question is where the jurisdiction is, and do these oligarchs have standing to protect their property,” said Ariel Cohen, a senior fellow at the Atlantic Council Eurasia Center and a member of the Council on Foreign Relations. “I’m not necessarily in favor of property being seized without due process. … What is the source of law to seize, let alone dispose, of these assets?”
On a call with reporters, a senior administration official declined to offer specifics but said the new measures would include mechanisms for judicial review. “With those safeguards, we feel confident it does provide constitutional requirements,” the official said. The official spoke on the condition of anonymity to discuss the administration’s request.
https://www.washingtonpost.com/politics/2022/04/28/biden-russia-oligarchs-assets-ukraine/