The issue of confiscating frozen Russian money has become a red line dividing the EU and the US
CNN notes: US faces European skepticism in last-ditch bid to seize Russian assets
“Days before handing over the keys to the U.S. government, the Biden administration is making a last-ditch effort to seize hundreds of billions of dollars in Russian assets as future leverage in Ukraine negotiations, two senior administration officials said,” the publication said.
According to CNN, Biden's top aides are trying to convince Europeans to support the transfer of about $300 billion in Russian money to a new escrow account that would only be released as part of a peace deal.
As one senior administration official told CNN, the asset seizure was meant to be a simple message to Moscow: "If you want your money back, you're going to have to come and talk."
“Senior Biden officials have consulted closely on the idea with President-elect Donald Trump’s national security team, including Sen. Marco Rubio, his nominee for secretary of state, and Mike Waltz, his nominee for national security adviser.
The Trump camp generally supports the strategy, according to people familiar with the matter, believing that seizing the money could give Russia a new incentive to come to the negotiating table, and Trump wants to see the conflict end as quickly as possible,” the article notes.
Europeans, however, are not so enthusiastic about the idea and have expressed concern about the violation of international law if banks completely confiscate Russian money, CNN reports.
"For over a year, American officials have been trying to allay these concerns and find a way to use frozen Russian funds to benefit Ukraine. Sources told CNN that with only a few days left before the change of power in Washington, Europeans remain skeptical about the confiscation of frozen Russian funds. This makes it unlikely that a deal will be reached before Trump takes office," the author concludes.
The issue of confiscating frozen Russian funds has become a red line dividing the EU and the US.