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Mr. President – Implement REPO Act before the G-7 Meeting
As regular readers know, the U.S.-Ukraine Foundation’s Friends of Ukraine Network (FOUN) has pushed for the transfer of all Russian state assets to central bank escrow accounts or the equivalent for two years, noting, among other things, that in the United States, this could be done immediately and without new legislation under the 1977 International Emergency Economic Powers Act. Indeed, members of FOUN’s Reimagining, Reconstruction, and Recovery of Ukraine Task Force have participated in webinars, published op-eds, and testified on this subject.
However, now that Congress has passed and President Biden has signed into law the Rebuilding Economic Prosperity and Opportunity for Ukrainians (REPO) Act, action must be taken – no excuses.
Below here there is a press release from four bipartisan Members of Congress – both House and Senate – calling on President Biden to implement the REPO Act ahead of the upcoming G7 meeting.
A critical leadership opportunity – seize the opportunity.
FOR IMMEDIATE RELEASE
May 21, 2024
MEDIA CONTACT
Ben Kamens
(202) 897-7438
Kaptur, McCaul, Risch, Whitehouse Urge Biden Administration to Implement REPO Act Ahead of G7 Finance Ministers’ Meeting
Washington, DC – Congresswoman Marcy Kaptur (OH-09), Co-Chair and Co-Founder of the Congressional Ukraine Caucus, and Congressman Michael McCaul (TX-10), Chair of the House Foreign Affairs Committee, along with Senators Jim Risch (R-ID), Ranking Member of the Senate Foreign Relations Committee, and Sheldon Whitehouse, Chair of the Senate Budget Committee (D-RI) sent President Biden a letter urging the administration to implement the REPO Act ahead of the G7 finance ministers’ meeting this week. The bipartisan and bicameral REPO Act, which was signed into law on April 24, gives the President authority to seize Russian sovereign assets frozen in the United States and transfer them to Ukraine for its reconstruction. It also directs the President to engage with other like-minded allies and partners, like those in the G7, to establish an international compensation mechanism.
“We appreciate that your National Security Council is leading talks to encourage our G7 and European Union partners to find creative mechanisms for using Russian sovereign funds frozen in their respective jurisdictions. We all agree that acting together with our G7 and European allies is critical to the success of this effort given the vast majority of frozen Russian sovereign assets lie in G7 and EU jurisdictions,” the members wrote. “We are encouraged to hear your team is working toward an announcement for the June G7 meeting on this front. We request a briefing on the progress of these talks by June 1st.”
“To show Russia we are serious, it is critical we are seen to be taking steps toward implementing the REPO Act in support of Ukraine,” the members continued. “As you well know, Russia shows no signs of relenting on its illegal military campaign or engaging in multilateral talks, so the time to act is now. As such, we urge you to take swift action to implement the REPO Act and brief us accordingly.”
Full text of the letter can be found by clicking here and below:
Dear President Biden,
Thank you for your support of the Rebuilding Economic Prosperity and Opportunity for Ukrainians (REPO) Act. Now that it has been signed into law, we write to inquire about your plans for its implementation.
First, we request a status update on implementation of section 104(a) of the bill, which requires financial institutions to identify and report to the Treasury Department any Russian sovereign assets they are currently holding. While we understand the Office of Foreign Asset Control’s Directive 4 (as amended) under Executive Order 14024 calls for similar reporting, the REPO Act specifically requires the Secretary of the Treasury to report this information to Congress within 90 days of enactment. We request an interim update as soon as possible on what guidance the Treasury Department has given to financial institutions and when Congress can expect to receive this report.
Second, we appreciate that your National Security Council is leading talks to encourage our G7 and European Union partners to find creative mechanisms for using Russian sovereign funds frozen in their respective jurisdictions. We all agree that acting together with our G7 and European allies is critical to the success of this effort given the vast majority of frozen Russian sovereign assets lie in G7 and E.U. jurisdictions. We are encouraged to hear your team is working toward an announcement for the June G7 meeting on this front. We request a briefing on the progress of these talks by June 1st.
Lastly, the Department of the Treasury will play an important role in REPO implementation both domestically and for our partners internationally. Has Treasury engaged with central banks, regulators, and repositories in partner jurisdictions – in particular, the National Bank of Belgium, the Belgium Financial Services and Markets Authority, and Euroclear – on the concept of confiscating Russian sovereign assets? If so, we ask that you include details on these engagements during our briefing.
To show Russia we are serious, it is critical we are seen to be taking steps toward implementing the REPO Act in support of Ukraine. As you well know, Russia shows no signs of relenting on its illegal military campaign or engaging in multilateral talks, so the time to act is now. As such, we urge you to take swift action to implement the REPO Act and brief us accordingly. We look forward to hearing from your team on our requests for information in the coming weeks.
ROBERT MCCONNELL
Co-Founder, U.S.-Ukraine Foundation
Director of External Affairs, Friends of Ukraine Network
The introduction is Mr. McConnell’s and does not necessarily represent the views of the U.S.-Ukraine Foundation or the Friends of Ukraine Network.