The U.S. Department of the Treasury announced on Tuesday that it has required the country’s banking sector to begin reporting their holdings of Russian assets. This initiative aims to eventually seize these billions of dollars in assets and sell them to aid the struggling Ukrainian economy.
This directive stems from a new law passed by Congress this year, known as the REPO Act. This legislation empowers the U.S. government to confiscate Russian state assets held by American banks and utilize those funds for Ukraine. While most Russian assets are located in Europe, estimates suggest that the U.S. banking system holds up to $6 billion in Russian assets.
Banks are expected to inform the Office of Foreign Assets Control (OFAC) about any Russian assets on their books by August 2. If a bank discovers additional Russian assets after the deadline, it must report those assets within 10 days, according to the Treasury Department.
The war in Ukraine, which began in February 2022, has resulted in tens of thousands of deaths and has severely devastated the country’s economy and infrastructure. The World Bank estimated in February that Ukraine would require $486 billion for recovery and reconstruction, a figure that has likely increased as the conflict drags on.
Members of the G7, which includes the United States, Canada, France, Germany, Italy, the United Kingdom, and Japan, froze Russian assets worth approximately $300 billion at the onset of the war. These assets included foreign currencies, gold, and investments in both public and private companies.
For further details, you can explore more about the impact of this situation on Ukraine’s economy.
Image and News Source: https://es-us.noticias.yahoo.com/bancos-eeuu-empezar%C3%A1n-declarar-activos-233444642.html
