The National Security Act of 2024 authorizes the administration to confiscate and use Russian sovereign assets subject to U.S. jurisdiction to compensate Ukraine for damages caused by Moscow’s invasion under the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act (REPO for Ukrainians Act). This legislation marks the most significant legislation relating to the confiscation of sovereign assets in nearly two decades.
Below is an oversight guide and calendar for the REPO for Ukrainians Act.
Since the passage of the REPO for Ukrainians Act, G-7 leaders have agreed on a plan to support Ukraine using frozen Russian sovereign assets. By engineering a $50 billion loan package for Ukraine backed by profits from billions in frozen Russian assets, the G-7 can financially support Ukraine’s reconstruction without outright confiscating the assets. To help ensure the longevity and viability of this plan, European Union member states are meeting this week to renew Russia sanctions and extend the renewal period of sanctions on Russian sovereign assets. Compared to the U.S.’s jurisdiction over $5 billion in Russian frozen assets, this plan takes advantage of partners’ combined jurisdiction over some $320 billion in Russian assets frozen by the West. Congressional leaders have also been generally supportive of these efforts.
While this news marks a significant change, there are still important oversight opportunities for Members of Congress under the REPO for Ukrainians Act. Specifically, the new legislation:
• Requires the President to direct financial institutions to provide notice of Russian state assets that they are holding within 10 days of discovering such assets.
• Authorizes the President to confiscate Russian sovereign assets 30 days after certifying to Congress that doing so is in the national interest of the United States. The administration also must certify that it coordinated with key U.S. allies and developed a mechanism to compensate Ukraine for damages while developing appropriate oversight mechanisms to prevent abuse.
• Provides Congress with a way to block the transfer of Russian assets by passing a joint resolution prohibiting the transfer within 15 days of receiving notice of the transfer. The President must enact this resolution.
• Requires the President to report to Congress on the amount of Russian funds confiscated and transferred every 180 days.
• Prevents the administration from unblocking Russian sovereign assets and returning them to Moscow unless the President certifies that Russia has terminated its invasion of Ukraine and has fully compensated Kyiv for damages. Congress can also block the release of these assets through a joint resolution.
• Limits judicial review to claims brought within 60 days of an action that would allegedly deny constitutional rights and provides expedited consideration in the U.S. District Court for the District of Columbia.
• Requires the administration to establish an international mechanism to assist Ukraine and provide Congress with an expedited way to block the release of funds within 30 days of receiving notice of entering any such international agreement.
• April 24, 2024—Prohibitions on the release of blocked Russian sovereign assets took effect immediately (Sec. 103(a) of Division F).
• July 23, 2024—The President shall mandate that financial institutions report on the location and disposition of all Russian sovereign assets (Sec. 104(a) of Division F).July 23, 2024—The first report from the President is due on the status of the status of the Ukraine Support Fund, which was established by the REPO for Ukrainians Act (Sec. 104(i) of Division F). It is due every 180 days after the submission of the first report.
• July 23, 2024—The first report from the President is due on the status of the status of the implementation of the international mechanism and Ukraine Compensation Fund (Sec. 105(g) of Division F). It is due every 90 days after the submission of the first report.
• July 23, 2024—The first report is due from the Secretary of State and Treasury Secretary on the amount and source of Russian sovereign assets seized, transferred, or confiscated; the amount and source of funds deposited into the Ukraine Support Fund; and a detailed description and accounting of how such funds were used to meet the purposes of the REPO for Ukrainians Act (Sec. 106 of Division F). It is due every 180 days after the submission of the first report.
• October 21, 2024—The first annual report from the President on the disposition of Russian sovereign assets in U.S. financial institutions (Sec. 104(a)(2) of Division F). It is due annually after the submission of the first report for a period of three years.
• October 21, 2024—The Secretary of State and USAID Administrator submit a report on Ukraine’s needs for reconstruction, rebuilding, and humanitarian aid (Sec. 107(a) of Division F).
• April 24, 2029—The authorities of the REPO for Ukrainians Act sunset (Sec. 104(l) of Division F).