For the first time, the Biden administration will transfer funds to a NATO ally to assist Ukraine. The action is necessary as the GOP treason party continues to do Putin’s bidding by stalling the critical funds necessary for Ukraine to continue to defend freedom and democracy.
In March 2023, an investigation into the attempted smuggling of a dual-use export-controlled item to Russia resulted in the forfeiture of $484,696, representing funds wired into the United States to purchase the item. The item, known as a jig grinder, is a high-precision grinding machine system that requires a license for export or reexport to Russia because of its applications in nuclear proliferation and defense programs. The jig grinder was intercepted before it could reach Russia.Estonia to Support Ukraine Using Funds Forfeited by United States After Interception of Sophisticated Military-Grade Machinery Bound for Russia; Defendant in Scheme Separately Pleads GuiltyDeputy Attorney General Lisa Monaco and Estonian Secretary General Tõnis Saar announced today at the Munich Security Conference the transfer of nearly $500,000 in forfeited Russian funds for the purpose of providing aid to Ukraine. The funds were forfeited by the United States following the breakup of an illegal procurement network attempting to import into Russia a high-precision, U.S.-origin machine tool with uses in the defense and nuclear proliferation sectors. Additionally, on Wednesday, Feb. 14, a citizen of Latvia charged criminally in connection with the procurement scheme pleaded guilty to violating U.S. export laws and regulations.
This transfer is the first of its kind from the United States to a foreign ally for the express purpose of assisting Ukraine, and the second time the Justice Department’s Task Force KleptoCapture has made confiscated Russian assets available for Ukraine—having provided $5.4 million in forfeited funds last year to the State Department for the support of Ukrainian war veterans. The confiscated funds are being transferred to Estonia since under current authorities, the facts of this case do not allow for a direct transfer to Ukraine. Estonia will use the funds for a project to expedite damage assessments and critical repairs to the Ukrainian electrical distribution and transmission system, which have been purposefully targeted by Russian forces.
“Today’s announcement demonstrates the unwavering resolve of the United States and our Estonian partners to cut off President Putin's access to the western technologies he relies on to wage an illegal war against Ukraine,” said Deputy Attorney General Lisa Monaco, who signed the transfer agreement on behalf of the United States. “This step for justice and restoration blazes a new trail toward combating Russia’s ongoing brutality. The Department of Justice will continue pursuing creative solutions to ensure the Ukrainian people can respond and rebuild.”
“Preventing cross-border crime has been and will be an even greater priority in the future,” said Secretary General Tõnis Saar of the Estonian Ministry of Justice.“Effective prosecution of sanctioned crimes is a very important part of this. In my opinion, this agreement provides additional motivation to deal with sanctions violations even more. The reason is very simple, the goal here is not only to detect, prosecute and ensure justice, but to direct illegal income to the victim, i.e. Ukraine. I hope that this will become the new normality for sanctioned crimes in other countries in the future.”
The Russian central bank has not given a detailed breakdown of what was frozen but a rough outline can be gained from documents detailing Russian holdings at the beginning of 2022.
At that time, Russia's central bank held around $207 billion in euro assets, $67 billion in U.S. dollar assets and $37 billion in British pound assets.It also had holdings comprising $36 billion of Japanese yen, $19 billion in Canadian dollars, $6 billion in Australian dollars and $1.8 billion in Singapore dollars. Its Swiss franc holdings were about $1 billion.Russia's central bank said these assets were mainly invested in foreign securities, bank deposits and nostro correspondent accounts.
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The banks biggest bond holdings were in the sovereign bonds of China, Germany, France, Britain, Austria and Canada.Russia's gold reserves were held in Russia.Investments in yuan are held in China.HOW WERE THE ASSETS HELD?
Russia's central bank did not hide behind complex chains of nominal holders so identifying the assets will not be difficult.Most of the assets - including those of private Russian citizens - have been frozen at depositaries.