The confiscation of $300 billion in frozen Russian assets will provide Ukraine with the opportunity to secure victory; this is a crucial issue for the country today, stated Bill Browder, founder and CEO of Hermitage Capital Management, during a discussion at the Ukrainian House on the sidelines of the World Economic Forum in Davos.
"If these funds are confiscated and allocated for Ukraine's defense, Ukraine will have a significantly extended runway to continue defending itself, and the vast economic disparity between Russia and Ukraine will diminish. When people discuss what is of utmost importance for Ukraine right now, it is absolutely clear to me – these $300 billion. Everything else is secondary," Browder asserted.
According to him, Western support at the onset of the war was critically important and beneficial, but Putin has always believed that the West would eventually tire of financing the war, and to some extent, his assessment has proven correct. Therefore, now that Putin's economy is "on the brink," it is vital to support Ukraine with confiscated Russian funds.
Browder believes that if the $300 billion is not confiscated, at some point, the West will run out of patience and funds for Ukraine, citing last January's situation when the U.S. delayed the approval of a $50 billion military aid package, which led to problems at the front.
Browder, who leads the Global Magnitsky Justice campaign and has a 15-year history of confronting Putin, emphasized that all legal complexities surrounding the confiscation of these funds pale in comparison to the price the West will have to pay if Ukraine loses.
"In my personal conflict with Putin, which has lasted over 15 years, I have never seen him compromise, negotiate, or retreat in any way. His entire modus operandi is to double down, bluff, no matter how poor his cards are, and simply continue escalation. Therefore, I believe that no matter what Trump wants or what his team envisions regarding the outline of a deal, Putin is not interested in accepting it," said Browder from Hermitage Capital Management.
He added that if Trump is unwilling to provide Ukraine with American funds for military support, then it is essential to seize those $300 billion.
"I hope that everything will move in this direction. I don't want to speculate too far into the future, as it is completely unknown, but today (following Trump's statement about the possibility of tightening sanctions if Putin refuses to end the war – IF-U) I feel much better than I did three days ago," Browder concluded.
Board member of the European Bank for Reconstruction and Development (EBRD) Artem Shevalev noted during the discussion that it is also important to remember that the real damage inflicted by Russia on Ukraine is much greater and may approach $1 trillion.
"These are enormous figures. Ukraine will need these funds for support. It is absolutely clear that they should not come from Western taxpayers. $300 billion - let’s treat this as a settled matter. I know it is not, but this will help key decision-makers think about how to secure more funds from Russia for financing Ukraine's recovery and rearmament in the future," Shevalev stated.
In his opinion, it is also necessary to discuss reparatory taxes and fees, reparatory sanctions, and tariffs.
"We must work together to ensure that after the $300 billion, significant funds follow," emphasized the Ukrainian representative at the EBRD.
Deputy Head of the President's Office Irina Mudra stated during the discussion that the confiscation of $300 billion in Russian assets is the top priority for Ukraine right now.
"We are continuing negotiations with all relevant stakeholders on both sides of the Atlantic. We ask for your support in this: raise awareness, engage politicians, speak loudly, and increase pressure. We must not allow the fear of action to paralyze us and lead to the worst possible outcome. The disintegration of Ukraine will destroy European security and plunge the world into chaos," she stressed.
According to her, if this step is not taken, the aggressor will understand that it can continue to undermine international law and unity while achieving its goals without paying any price.
As reported, the G7 countries in 2024 reached an agreement to use revenues from frozen Russian assets to assist Ukraine (the ERA mechanism), which is expected to allocate up to $50 billion to Ukraine by the end of 2025, of which $4 billion has been received so far. However, this mechanism does not affect the frozen Russian assets themselves.
The work of the Ukrainian House in Davos at the World Economic Forum was organized by the Victor Pinchuk Foundation, Horizon Capital, and UMAEF.