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Why do the US and its allies want to seize Russian reserves to aid Ukraine?
Brookings
2024.03.22
After Russia invaded Ukraine in February 2022, Russia’s foreign exchange reserves held by the U.S. and its allies were frozen. Since then, some officials and commentators have proposed seizing those assets, which amount to nearly $300 billion, and using the proceeds to defend and rebuild Ukraine. Russian reserves could provide Ukrainians much-needed support as the war drags into its third year. This policy is not without risk or controversy: Seizing foreign exchange reserves has little economic or legal precedent and uncertain long-run effects. This post explains the efforts to seize Russia’s reserves and the possible consequences for the global financial system.