Larry Summers Proposes Utilizing Frozen Russian Assets To Support Ukraine: 'It's A Very Difficult Budgetary Time'

Former Treasury Secretary, Larry Summers, has suggested the Biden administration utilize frozen Russian assets to financially aid Ukraine, rather than drawing from the U.S. budget, Business Insider reported. 

Summers highlighted the financial and political implications of funding Ukraine from the U.S. budget during an interview with Bloomberg TV.

“It’s a very difficult budgetary time, in the United States and other major economies. What those facts say to me is that we’re not going to find hundreds of billions of dollars for Ukraine in our budgets,” Summers said.

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Summers proposed the reallocation of frozen Russian assets, first seized by Western institutions due to Moscow’s invasion of Ukraine last year, as a viable alternative.

This move would not only provide the necessary support for Ukraine but also free the U.S. to commit to other pressing issues like climate change, he added.

Earlier this year, Hermitage Capital Management CEO, Bill Browder, also advocated for the utilization of these frozen assets for Ukraine’s benefit. However, the legal aspects of seizing these foreign exchange and gold reserves remain to be resolved.

Summers’ proposal comes amid the Biden administration announcing an additional $325 Million for Ukraine aid.

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Photo by Brookings Institution on Flickr