A U.S. Treasury official is traveling to Kyiv this week to talk about U.S. financial support for Ukraine, efforts to tighten sanctions on Russia and plans to use immobilized Russian sovereign assets for the benefit of Ukraine as it fends off Russian fo…
WASHINGTON — A senior U.S. Treasury official is in Kyiv this week to talk with government officials about U.S. financial support for Ukraine, efforts to tighten sanctions on Russia and plans to use immobilized Russian sovereign assets for the benefit of Ukraine as it fends off Russian forces.
Deputy Secretary Wally Adeyemo’s trip comes as Russia gains territory on the battlefield after an especially lengthy delay in U.S. military aid left Ukraine at the mercy of Russia’s bigger army and as the outlook for Ukraine’s state finances is on shakier ground.
Adeyemo is set to meet with officials in Ukraine’s finance ministry and president’s office. He’s also planning a stop at the Kyiv School of Economics to speak with faculty and civil society groups working on sanctions policy and ways to make sanctions on Russia more effective.
President Joe Biden signed legislation in April that allows the administration to seize the roughly $5 billion in Russian state assets located in the U.S. However, a majority of the $260 billion in frozen Russian assets are in Europe, and U.S. officials are hoping for a consensus from their European allies on how to spend that money.
U.S. Treasury Secretary Janet Yellen met in Stresa, Italy, with her counterparts from the Group of Seven nations last week to discuss how to squeeze money out of the frozen Russian assets to support Kyiv’s war effort.
She said loaning Ukraine $50 billion from the assets “has been mentioned as a possible number that could be achieved,” but that the specific approach was still under discussion.
Since the beginning of Russia’s invasion of Ukraine in February 2022, the U.S. has sanctioned more than 4,000 people and businesses, including 80% of Russia’s banking sector by assets.
In recent weeks, tensions between Russia and Ukraine have escalated once again, prompting the United States to take action in the form of imposing sanctions on Russia. The latest development in this ongoing conflict came in the form of a discussion between Ukrainian officials and a US Treasury official regarding the sanctions on Russia.
The meeting, which took place in Washington, D.C., was attended by Ukrainian Foreign Minister Dmytro Kuleba and US Treasury Undersecretary for Terrorism and Financial Intelligence Brian Nelson. The purpose of the meeting was to discuss the impact of the sanctions on Russia and to coordinate efforts to further isolate the Russian government.
The sanctions on Russia were imposed in response to a number of aggressive actions taken by the Russian government, including the annexation of Crimea in 2014 and ongoing military aggression in eastern Ukraine. The US has also accused Russia of meddling in the 2016 US presidential election and other acts of cyber warfare.
During the meeting, Ukrainian officials expressed their gratitude for the support of the United States and emphasized the importance of maintaining pressure on Russia to end its aggression in Ukraine. They also discussed ways to further strengthen the partnership between the two countries in order to counter Russian influence in the region.
The US Treasury official reiterated the United States’ commitment to supporting Ukraine in its efforts to defend its sovereignty and territorial integrity. He also emphasized the importance of working together to combat Russian aggression through targeted sanctions and other measures.
Overall, the discussion between Ukrainian officials and the US Treasury official highlighted the strong partnership between the two countries in addressing the ongoing conflict with Russia. By coordinating efforts and maintaining pressure on the Russian government, both parties hope to bring about a peaceful resolution to the conflict and ensure stability in the region.
