The US is preparing to transfer $5-8B of Russian assets for the reconstruction of Ukraine.

Congress is preparing a bipartisan bill that would allow the confiscation of $5-8B of the Russian Federation’s sovereign assets that are currently under the US’ jurisdiction and use them to finance Ukraine’s reconstruction.

Discussions of these plans will intensify in the coming weeks, when Congress will vote on a new bill on aid to Ukraine. If the decision is adopted, it will become a powerful financial tool for the US president, which could change modern economic diplomacy.

Speaker of the House of Representatives Mike Johnson voiced the idea of using frozen Russian assets to support Ukraine. He also signaled that Republicans might try to give Ukraine some aid through a loan.

Also, it is likely that a decision by the US to provide Ukraine with confiscated assets will prompt a similar move by the EU, which has so far only dared to use the profits from these assets.