Harvard Law professor says US should liquidate Russia's foreign reserves and use the money to fund

[Crunchy Frog]

military aid to Ukraine

A Harvard Law School professor suggested recently that the US should liquidate Russia's foreign reserves and use the money to fund Ukrainian military aid.

Russia's central bank may have up to $100 billion in foreign exchange reserves sitting in the US and liquidating the funds may be an "obvious solution" to punishing Russia for its unprovoked war against Ukraine, constitutional law professor Laurence Tribe and Harvard Law student Jeremy Lewin wrote in a New York Times op-ed published on Friday. 

Liquidating the funds could be a quick way to unlock money to provide military aid for Ukraine, while also saving American taxpayers from feeling "burdened," Tribe and Lewin wrote. 

https://www.businessinsider.com/us-should-liquidate-russias-foreign-reserves-ukraine-war-harvard-professor-2022-4

It seems like that would solve a lot of problems. Would also be a good source of funds for humanitarian aid, and to get a start on rebuilding.

[FBaggins]

1. Harvard law professor is incorrect

The law he cites has been used many times to freeze the assets of foreign governments that the US has sanctioned. But it has never been used to redirect those funds to whatever the president wants to do with them (which is essentially what he claims can be done). He cites a few examples of redirected funds, but every single one of them returns the funds to country that originally owned them... either to the new government of that country after the old one is ousted (as with Iraq), or to settle the adjudicated debts of the country (as with Iran).