Senator JD Vance (R-OH) questioned Deputy Secretary of the Treasury Wally Adeyemo at a Senate Banking Committee hearing on unprecedented legislation that would seize Russian assets in an effort to send more funds to Ukraine. If enacted, it would be the first time that the United States has seized assets of a foreign nation not in direct military engagement with the United States.
The “REPO for Ukrainians Act” would remove the President’s ability to end or alter the enforcement of the legislation, tying the hands of a future President to secure a peace deal in the Russia-Ukraine conflict. It would also negatively impact the auctionability and attractiveness of American treasury bonds, threatening our ability to finance our debt and avoid default.
Watch an exchange between Senator Vance and Secretary Adeyemo here and below:
Senator Vance: “I think it’s really important for the next administration to have diplomatic flexibility to negotiate what will certainly, I think, be an end to the Russia-Ukraine War, whatever that ultimately takes. I hope to God that it doesn’t last another five years.
“And what I worry about with the REPO Act is that we actually, if we are freezing the sanctions regime, we prevent the President from having an important tool at his disposal in actually negotiating a peaceful settlement to that conflict.
“Let me ask just one final question on the REPO Act. As I understand it, it would effectively force asset seizure of all Russian assets, and I’m wondering, have we done that in a time of peace with a country that we’re not directly at war with? Have we ever done something like what the REPO Act envisions?”
Secretary Adeyemo: “In terms of seizing the assets against a country that we’re not engaged in hostility against, I don’t know that we have done something like that at this juncture.”
Senator Vance: “I appreciate that, Mr. Secretary. And with that, I yield the remainder of my time. Thanks for being here and thanks for answering my questions.”
