Yellen urges world leaders to ‘unfreeze’ Russia’s central bank’s frozen assets and send them to Ukraine

WASHINGTON (AP) – Treasury Secretary Janet Yellen has received the strongest public support yet for the idea of ​​liquidating Russia’s central bank’s roughly $300 billion in frozen assets and putting it toward Ukraine’s long-term recovery. has been expressed.

“It is necessary and urgent for our coalition to find ways to unlock the value of these entrenched assets to support Ukraine’s continued resistance and long-term reconstruction,” Yellen said. He made the remarks in a speech scheduled for Tuesday in Sao Paulo, Brazil. Finance ministers and central bank governors from 20 countries will meet this week.

“I believe there is a strong international legal, economic and moral basis for moving forward. This will be a decisive response to Russia’s unprecedented threat to global stability,” she said. says.

The United States and its allies have frozen hundreds of billions of dollars in Russian assets held abroad in retaliation for Russia’s invasion of Ukraine. As the war rages into its third year, these billions of dollars are sitting untapped, with officials from multiple countries debating the legality of sending money to Ukraine. More than two-thirds of Russia’s stranded central bank funds are in the EU.

Using the assets to support Ukraine “would make it clear that Russia cannot win by prolonging the war, and would encourage Russia to come to the table for fair peace negotiations with Ukraine,” Yellen said. says.

The idea of ​​tapping into Russia’s frozen assets has recently gained traction as the ally’s continued funding for Ukraine becomes more uncertain and the U.S. Congress is deadlocked over providing further aid. There is. However, there is also a trade-off, as the weaponization of global finance could undermine the US dollar’s status as the world’s dominant currency.

Earlier this month, the European Union passed a law to set aside windfall profits from freezing Russian central bank assets. Yellen called it “an action that I fully support.”

Brazil began its role as chairman of the Group of 20 (G20) this month, with a meeting of finance ministers held this week. Topics of discussion include poverty alleviation, climate change, and the wars in the Gaza Strip and Ukraine. G20 leaders are scheduled to meet for a summit in Rio on November 18-19.