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REPO for Ukrainians Act
3/8/2024, 8:15 AM
Summary of Bill HR 4175
A repurchase agreement, or REPO, is a financial transaction in which one party sells securities to another party with a promise to repurchase them at a later date. In this case, the US government would enter into REPO agreements with the Ukrainian government, providing them with much-needed liquidity.
The bill aims to support Ukraine in the face of economic challenges and geopolitical tensions. By providing financial assistance through REPO agreements, the US government hopes to stabilize the Ukrainian economy and strengthen their ability to resist external pressures. The REPO for Ukrainians Act has garnered bipartisan support in Congress, with lawmakers from both parties recognizing the importance of supporting Ukraine in the current political climate. The bill is currently being debated and reviewed in committee, with the hope of passing both the House and Senate in the near future. Overall, the REPO for Ukrainians Act is a significant piece of legislation that aims to provide crucial financial assistance to Ukraine through the use of repurchase agreements. It reflects the US government's commitment to supporting Ukraine in the face of economic and geopolitical challenges.
Congressional Summary of HR 4175
Rebuilding Economic Prosperity and Opportunity for Ukrainians Act or the REPO for Ukrainians Act
This bill requires or authorizes various actions related to the confiscation and disposition of Russian sovereign assets (which include funds and other property of Russia's central bank, direct investment fund, or ministry of finance).
Under the bill, the President must require U.S. financial institutions to notify the Department of the Treasury of any Russian sovereign assets located at such institutions. The President may confiscate any such assets subject to U.S. jurisdiction. Confiscated funds and the proceeds of liquidated property must be deposited into the Ukraine Support Fund established by the bill.
The Ukraine Support Fund shall be used by the Department of State to compensate Ukraine for damages caused by the Russian invasion. The Ukraine Support Fund may also support an international body or mechanism for (1) reconstruction and rebuilding efforts in Ukraine, (2) humanitarian assistance to the Ukrainian people, or (3) other purposes which support the recovery of Ukraine and the welfare of the Ukrainian people.
The bill also directs the President to seek to establish, with foreign partners, an international mechanism to provide compensation to Ukraine using the Ukraine Support Fund and Russian sovereign assets confiscated by foreign partners.
Additionally, the bill sets policy on related topics, such as specifying that the United States should lead an international sanctions regime to freeze Russian sovereign assets in conjunction with allies and partners.
