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Possible confiscation of Russian assets, $60.8bn to Ukraine: Markarova explains aid bills

The disbursement document also stipulated that supervision would be strengthened through monitoring requirements.

Possible confiscation of Russian assets, $60.8bn to Ukraine: Markarova explains aid bills
Photo: EPA/UPG

The House of Representatives has published four bills to be considered by Congress this week. One of them is dedicated to Ukraine and includes $60.8bn in appropriations.

Defence expenditures out of this amount amount to $49.9bn. Ambassador of Ukraine to the United States Oksana Markarova provided details on the content of the document.

In particular:

  • $23.2 billion - replenishment of defence goods and services provided to Ukraine
  • $11.3 billion for ongoing US operations in the region
  • $13.8 billion for the purchase of modern defence systems, defence goods and services
  • $1.6 billion in foreign military financing (FMF) to meet the needs of Ukraine and other regional partners

Funding is also provided for:

  • $26 million to ensure oversight and accountability of aid and equipment provided to Ukraine
  • 5 million for the State Department to administer defence assistance
  • 300 million to help Ukraine secure its borders and promote the rule of law
  • 100 million to support mine action, counter-terrorism and non-proliferation programmes
  • 9.5 billion for economic assistance to Ukraine and countries affected by Russia's invasion of Ukraine
  • $7.849 billion for economic assistance to Ukraine, which may include direct budget support (except for pension reimbursement)
  • $1.575 billion for other types of economic assistance to Ukraine and the affected countries
  • $25 million for the USAID Office of Transition Initiatives to support Ukraine and countries affected by the Russian invasion
  • 50 million to respond to the global food security situation.

The budget also provides for the allocation of

  • $149 million to the US National Nuclear Security Administration to respond to nuclear security situations in Ukraine
  • $481 million to the U.S. Department of Health and Human Services to help Ukrainians who have received a humanitarian password to the United States through the U4U programme.

The bill provides for additional funding to be used, among other things, to assist Ukraine and respond to the situation related to the Russian invasion:

  • $60 million for diplomatic programmes
  • 8 million for the State Department's Office of Inspector General
  • $39 million for USAID operating costs
  • 10 million to the USAID Office of Inspector General
  • $98 million to the US Department of Energy for the development and production of radioactive isotopes.

Markarova added that the bill strengthens oversight through monitoring requirements, requires partners to provide cost-compatible assistance, provides for an agreement with the government of Ukraine on the return of funds provided for economic support, and increases the limits under the PDA mechanism.

The second draft law, which mentions Ukraine (21st Century Peace through Strength Act), provides for the possibility of confiscating Russia's sovereign assets in favour of Ukraine. In particular, the US President is given the authority to apply the procedure of confiscation of sovereign assets with the subsequent transfer of the relevant funds to special funds (Compensation Fund, Ukraine Support Fund). At the same time, the President may coordinate the algorithm for the transfer of confiscated Russian assets to Ukraine with the Group of Seven countries, the EU, Australia and other US partners.

The draft law stipulates that no later than 90 days after its adoption, the US President must submit a report to Congress, which shall include

  • each individual and entity subject to EU and UK sanctions
  • each individual and entity that meets the criteria for imposing US sanctions under the Magnitsky Global Human Rights Accountability Act of 2016; Executive Order 14024 (sanctions related to designated harmful activities of the Russian government); Executive Order 14068 (prohibiting certain imports, exports, and new investments in connection with the ongoing Russian aggression); Executive Order 14071 (prohibiting new investments and certain services to the Russian Federation in response to the ongoing Russian aggression)

The President of the United States must impose sanctions on each individual and entity identified in the above report as being subject to EU or UK sanctions and meeting the above US sanctions criteria.

"The law contains a number of other sanctions provisions that do not apply to Ukraine and provide for intensification of the fight against the spread of fentanyl, strengthening of the US sanctions policy, fight against money laundering, strengthening of information security, intensification of the fight against crime and other issues of US domestic policy," Markarova added.

The Rules Committee must develop a procedure for reviewing the draft law and agree on its submission for general debate. One of the options is to choose a procedure that will combine all the bills on US international aid and the 21st Century Peace through Strength Act into one package. The vote is expected on Saturday.

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