Deputy Secretary Wally Adeyemo’s visit to Ukraine this week has sparked discussions on US financial support for the country, tightening sanctions on Russia, and utilizing immobilized Russian assets for Ukraine’s benefit in the face of Russian aggression.
Adeyemo’s trip comes at a critical time as Russia continues to gain territory on the battlefield, following a significant delay in US military aid that left Ukraine vulnerable to Russia’s superior army. The situation has also raised concerns about Ukraine’s state finances, adding to the urgency of Adeyemo’s visit.
During his visit, Adeyemo is scheduled to meet with officials from Ukraine’s finance ministry and the president’s office. He will also engage with the Kyiv School of Economics to discuss sanctions policy and explore ways to enhance the effectiveness of sanctions on Russia.
President Joe Biden recently signed legislation allowing the US government to seize approximately $5 billion in Russian state assets located in the US. However, the majority of the frozen Russian assets, totaling $260 billion, are in Europe. US officials are working to coordinate with European allies on how to utilize these assets to support Ukraine’s defense efforts.
US Treasury Secretary Janet Yellen met with G7 counterparts in Italy last week to strategize on leveraging frozen Russian assets to aid Ukraine. Discussions included the possibility of lending Ukraine $50 billion from these assets, although the specific approach is still being determined.
Since the start of Russia’s invasion of Ukraine in February 2022, the US has imposed sanctions on over 4,000 individuals and businesses, including a significant portion of Russia’s banking sector. Adeyemo’s visit underscores the ongoing commitment of the US to support Ukraine in the face of Russian aggression and to strengthen international efforts to hold Russia accountable.