According to Reuters, the bill recently approved by the US Senate would pave the way for the seizure of Russian assets currently frozen in certain locations and their transfer to Ukraine for reconstruction, following the impact of Russia's military campaign in the country .
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| The Kamchia resort area is described as a Russian land on the Bulgarian coast. (Source: euractiv.com) |
On January 24, the U.S. Senate Foreign Relations Committee voted by an unprecedented 20-1 margin in favor of the "Rebuild Prosperity and Economic Opportunity Act (REPO) for Ukrainians."
Is the US determined to "pave the way"?
If the bill is passed by both the U.S. Senate and House of Representatives, and signed into law by President Joe Biden, as the White House anticipates, it would pave the way for Washington to seize the assets of a central bank from a country with which it is not at war for the first time.
Senator Ben Cardin, chairman of the Democratic Foreign Relations Committee, is optimistic that the bill will become law, noting that it has received broad support from both Democrats and Republicans in the Senate and House, as well as from the Biden administration.
The House Foreign Affairs Committee also passed a similar bill relatively "smoothly," receiving overwhelming bipartisan support. Cardin said he expects the Democratic-dominated Senate and the Republican-majority House of Representatives to be able to resolve the differences between the two bills.
The EU, the US, Japan, and Canada froze approximately $300 billion in assets belonging to the Russian Central Bank in 2022, as Moscow launched its special military operation in Ukraine. However, only about $5-6 billion of that was frozen in the US; the majority of Russian assets were held in Europe – specifically at the Euroclear Central Securities Depository in Belgium.
Meanwhile, according to Ukrinform , UK Prime Minister Rishi Sunak and his Belgian counterpart Alexander De Croo have agreed to continue joint actions on sanctions against Russia and the seizure of frozen Russian assets in support of Ukraine.
Bulgaria makes its first move.
Also related to the acquisition of Russian assets, Bulgaria recently hinted at its interest in seizing a Russian-owned resort on the Black Sea coast. Before the Russia-Ukraine conflict broke out, the Kamchia tourist center was said by Russian Foreign Minister Sergei Lavrov to be potentially used to expand Russian influence in Europe.
This is a new move by Bulgaria, as it was previously the only EU member state that had not imposed sanctions on any Russian individuals or entities on the EU sanctions list, due to a lack of mechanisms to enforce such sanctions.
Bulgarian lawmakers from the ruling majority are currently drafting a bill that would allow the government to seize the Russian-owned Kamchia resort, according to Euractiv . The resort, described as a Russian estate on the Bulgarian coast, has been operating for over 14 years. Kamchia is owned by the City of Moscow, but is managed in Bulgaria by Bulgarian citizens who are not officially subject to EU sanctions.
Recently, Bulgarian media reported that the Russian property management agency has requested the appointment of the head of the Russian oil giant Lukoil as the Director of the Kamchia Center. According to the latest figures released by the Bulgarian authorities in 2019, approximately 300,000 Russians own more than 500,000 properties in Bulgaria.
Ukraine is looking to its "European friends".
Regarding Ukraine, President Zelensky recently expressed his hope that the Council of Europe would release 50 billion euros for Ukraine as early as February 1st, during a meeting with Manfred Weber, Chairman of the European People's Party (EPP) and leader of the European People's Party group in the European Parliament, according to information from the Ukrainian President's website.
"We are hoping that the EU will release the €50 billion in aid to Ukraine at the special meeting of the European Council on February 1st," Zelensky stated, making the request to the leader of the European People's Party during their conversation.
The Ukrainian president also stated that the parties had discussed in detail Kyiv's progress on the path to European integration. Amidst US difficulties in providing further military aid to Ukraine, EU officials intend to consider a new plan that would allow Kyiv to receive tens of billions of dollars in military aid, despite internal disagreements within the Union.
Showing no less eagerness, during his meeting with Manfred Weber, Ukrainian Prime Minister Denys Shmyhal also spoke about the need to strengthen measures against Russia, as part of preparations for the 13th package of sanctions and the seizure of Russian assets frozen in the EU, according to a related announcement on the Prime Minister's Telegram channel .
“The meeting included discussions on continued comprehensive support for Ukraine from the European Parliament and all European institutions. We discussed the need to strengthen sanctions against Russia during the preparation of the 13th package. I raised the issue of seizing frozen Russian assets in the EU,” Shmyhal said.
"We expect even stronger decisions from our European friends," the Ukrainian Prime Minister expressed his confidence.
"A proportionate response"
In response to the latest moves by Ukraine and the West, Moscow also warned of a "proportionate response." Russia stated that it has a list of assets belonging to the US, Europe, and other countries that would be seized in retaliation if the other side were to seize its assets.
The Russian news agency RIA calculated that if the Kremlin retaliated, the West would lose nearly $300 billion in assets and investments if they seized frozen Russian assets to help rebuild Ukraine. RIA cited data showing that direct investments from the EU, G7 countries, Australia, and Switzerland in Russia totaled $288 billion by the end of 2022.
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