EXPLAINER: Why US needs a law to sell off oligarchs' assets
WASHINGTON (AP) — President Joe Biden doesn't want to just seize the yachts, luxury homes and other assets of Russian oligarchs, he wants to sell off the pricey goods and use the money to help rebuild Ukraine.
He's asking Congress to streamline the process to allow that to happen.
In the latest attempt to pressure Russia to end its war and to pay for the enormous costs of defending Ukraine, the Biden administration on Thursday called on Congress to enhance U.S. authority to liquidate assets seized from Russian elites — the “bad guys,” as Biden called them.
A look at what's afoot:
WHAT'S ALREADY BEING DONE?
The House on Wednesday passed the Asset Seizure for Ukraine Reconstruction Act, with only four lawmakers voting against the measure. The bill, which now goes to the Senate, would allow the president to confiscate and liquidate property owned by sanctioned individuals. The money could only be used for specific purposes.
The package that Biden sent to Congress goes further to create a new criminal offense, making it unlawful for anyone to knowingly own proceeds directly obtained from corrupt dealings with the Russian government. Additionally, property used to facilitate sanctions violations would also be eligible for seizure.
The White House says the new tools make sanctions more difficult to evade and the administration said it wants to use the money “to remediate harms of Russian aggression toward Ukraine.”
WHY DOES THE GOVERNMENT NEED LEGISLATION?
Under current federal law, only the Justice Department has the authority to determine how seized funds can be spent. And there are strict rules on who can benefit from seized proceeds. The Biden administration wants to make it easier for officials to decide how to use the proceeds of the blocked and seized property.
The...