Dollar Sanctions in Ukraine Aid Package Risk Dollar Privilege

An uncut sheet of the redesigned US$10 bill after a news conference to commemorate the first day of circulation of the new notes at the National Archives in Washington, on March 2, 2006. Alex Wong/Getty Images

Commentary

Buried in the newly adopted “21st Century Peace Through Strength Act” (H.R.8038) that was recently enacted, is a provision that authorizes the president to seize and transfer certain Russian sovereign assets to fund Ukrainian war compensation or reconstruction. While only $4–5 billion of those assets are subject to U.S. jurisdiction, another $190 billion is held in Europe, primarily within Belgium, according to the bill.