What's happened
As tensions rise over the ongoing war in Ukraine, the Biden administration is contemplating the seizure of Russian assets in the U.S. to bolster support for Ukraine. This comes amid concerns about future U.S. aid under President-elect Trump, who may not prioritize Ukraine's defense.
Why it matters
What the papers say
According to the New York Times, Treasury Secretary Janet Yellen emphasized the importance of the $20 billion loan to Ukraine, stating it sends a clear message to Putin about Western resolve. Meanwhile, Business Insider UK highlights the potential for the U.S. to set a precedent for asset seizure, which could influence European actions. However, concerns about economic repercussions in Europe remain a significant barrier, as noted by Hess and Mott, who argue that Biden should act unilaterally to avoid losing momentum before Trump takes office.
How we got here
The U.S. and its allies have imposed sanctions on Russia since its invasion of Ukraine in 2022, freezing approximately $322 billion in Russian foreign reserves. The Biden administration has been cautious about asset seizure, awaiting European consensus.
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