Biden Looks To Widen Seizures, Give Ukraine Oligarch Assets

Law360 (April 28, 2022, 5:53 PM EDT) -- President Joe Biden is looking to sharpen the U.S. government's forfeiture authority, unveiling proposed legislation Thursday that would expand the types of property that prosecutors can seize, streamline the process for taking Russian oligarch assets and allow their diversion to Ukraine.

The proposed legislative package is also aimed at cracking down on sanctions evasion, containing provisions that would allow federal prosecutors to go after property used to facilitate sanctions evasion and to charge sanctions evaders with federal racketeering. Biden also requested that Congress double the time that prosecutors have to bring money laundering charges based on foreign offenses, according to a White House fact sheet.

The entire package "will enhance the United States Government's authority to hold the Russian government and Russian oligarchs accountable for President [Vladimir] Putin's war against Ukraine," the fact sheet reads.

If passed, the proposed legislation would also criminalize the willful possession of proceeds directly obtained through corrupt dealings with the Russian government, according to the fact sheet.

U.S. Attorney General Merrick Garland had foreshadowed the request Tuesday, when he told Sen. Lindsey Graham, R-S.C., that the White House was preparing a legislative package that would beef up its forfeiture powers against Russian oligarchs and kleptocracy. The U.S. Department of Justice backs the proposals, Garland said.

Biden's bid for enhanced sanctioning power comes as Russia moves to blunt the impact of an unprecedented sanctions regime.

In response to Putin's invasion of Ukraine in February, the U.S. and its top allies pummeled Russia with sanctions and export restrictions aimed at blocking Kremlin access to critical technologies and Western financing, including Putin's war chest of foreign reserves. But in a bid to stabilize its economy, Russia, a major global energy supplier, demanded that foreign governments pay for Russian energy in rubles or be cut off. Moscow recently made good on those threats Wednesday when it shut off its gas supply to Poland and Bulgaria.

Also on Thursday, Biden pressed Congress to approve an additional $33 billion aid package to Ukraine, which would include $20.4 billion in military assistance and $8.5 billion in humanitarian relief. The aid package further includes $3 billion to address the food security, supply chain and other humanitarian issues arising from the Russian invasion, according to a separate White House fact sheet.

Congress had previously freed up $3.5 billion for Ukraine in March.

--Additional reporting by Stewart Bishop. Editing by Andrew Cohen.

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