PM: Ukraine prepares for confiscation of Russian assets, receives first 17B

"We already have the first implemented case in Ukraine: the confiscation of assets of two Russian banks in the amount of UAH 17 billion. Unfortunately, there are no other cases yet, but the active work is ongoing. The relevant infrastructure has been created," Prime Minister of Ukraine Denys Shmyhal said at a press conference in Kyiv on March 3, an Ukrinform correspondent reports.

As noted, the IMF opened a special administrative account in April 2022, through which $2.2 billion was transferred to Ukraine from partners last year.

"Confiscated assets can also be transferred for Ukraine's needs through it," the Prime Minister noted.

In addition, the World Bank created a trust account through which all funds from the United States came to Ukraine.

"It also can be used to receive confiscated funds, in particular Russia’s sovereign assets which are currently frozen," Shmyhal added.

The legislative regulation of the very procedure of confiscation of Russian assets remains one of the urgent problems.

"We are actively working with G7 countries, all international financial organizations. In particular, we are bringing this issue to the ‘financial Ramstein format’ for discussion. Two levels of legislation must be introduced.

At the first level, each country should adopt national legislation [on compensation]. And at the second level, international legislation should be adopted to greenlight the confiscation of the aggressor’s sovereign assets," Shmyhal said.

He emphasized that the created regulatory framework should become an element of the future global security system and send a clear signal to every potential aggressor: in case of an attack, all the attacker’s assets will be confiscated in favor of the victim.

"It's fair. Not Ukrainians, not European or American taxpayers should restore what was destroyed by the aggressor. The aggressor must restore that. If Russia does not agree to voluntary reparations, then the civilized world must confiscate the seized and frozen funds and give them to Ukraine," the Prime Minister emphasized.

Ukraine has been resisting Russia’s full-scale invasion for a year. According to PM  Shmyhal’s estimates, Russia has already caused $600-750 billion in damages to Ukraine.