Russia’s Central Bank Assets
March 25, 2025
After Russia launched a full-scale war on Ukraine in February 2022, the Group of 7 countries (G7,
including Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) announced
coordinated sanctions against Russia’s central bank. Specifically, the G7 and partner countries, including
Australia and Switzerland, froze about $280 billion in Russian central bank assets held in their
jurisdiction—at the time, about half of the central bank’s total assets.
In April 2024, Congress passed the Rebuilding Economic Prosperity and Opportunity (REPO) for
Ukrainians Act (Division F of P.L. 118-50). Among other measures, it directs the President to engage with
partner countries on how the assets could be used to support Ukraine. Following months of negotiations,
the G7 finalized in October 2024 plans for $50 billion in loans to Ukraine to be repaid with the future
interest on frozen Russian assets.
Policymakers are again discussing Russian central bank assets in the context of potential negotiations to
end the conflict. Congress could shape U.S. policy regarding Russian assets through legislation and
exercise oversight of the Administration’s policies through hearings and reporting requirements.
Context: Policy Debates and Previous Actions
Since the assets were frozen, policymakers and policy analysts in the United States, Europe, and partner
countries have debated whether, and if so, how, to use frozen Russian assets. Many experts have argued
that using Russian central bank assets to help Ukraine is legally and morally justified. For example, the
Economist argued that “the moral case to make Russia pay is obvious,” because Russia “waged war
without provocation, without regard to civilian lives and in frequent violation of international law,” the
economic damage is “far beyond the capacity of Ukraine” to address, and “western taxpayers should not
have to foot all the bill.” The Ukrainian government, European Commission, World Bank Group, and
United Nations estimated in February 2025 that Ukraine’s reconstruction and recovery costs would total
$524 billion over the next decade, almost three times the size of Ukraine’s economy.
Some observers have raised legal, economic, and strategic concerns and objections regarding the use of
frozen Russian assets for Ukraine—for example, whether transferring Russian assets to Ukraine would
violate international law, jeopardize confidence in western financial markets and currencies, and
complicate negotiations to end the war.
