America is the world's largest debtor. America has a staggering $16 trillion of debt even after all its international credits are counted. Back in 1983 America was a net creditor. Meanwhile, things are not getting better. America continues to run huge balance of payments deficites and huge budget deficits as far as the eye can see.
In other words America is deeply dependent of world credits markets for its economic survival. The last thing America should do is to try to seize Russia international assets. It will can into question America's good faith in world finances.
There are talks of the Biden Administration showing support for appropriating $300 billion in Russian central bank funds held in the U.S., Europe, and Japan to fund Ukraine. Treasury Secretary Janet Yellen said seizing funds without action from Congress is “not something that is legally permissible in the United States.” Many U.S. officials have also shown concern that this action could make other countries hesitant to keep funds in dollars or the Federal Reserve Bank. Talks have intensified over recent weeks amid fears that Western financial support for Ukraine is waning. With many details in debate, President Biden has yet to approve a strategy.
China, Saudi Arabia,
and Indonesia representatives are privately urging the EU to resist the
pressure from the U.S. and U.K. to take over €200 billion of Russian state
assets it immobilized after February 2022's invasion of Ukraine to help with
Kyiv's reconstruction efforts.
This could trigger major global financial problems as foreign
nations will likely reposition their assets beyond America's grasp and be
faless willing to loan America money.
Seizing Russia’s Central Bank Funds to Help Ukaine Is Well-Meant But Wrong (Bloomberg, 12-26-23)
U.S. and Europe Eye Russian Assets to Aid Ukraine as Funding Dries Up (The New York Times, 12-21-23)
US Eyes Frozen Russian Central Bank Funds to Fund Ukraine (Anti War, 12-21-23)
E.U. Moves to Tap Frozen Russian Assets to Help Ukraine (The New York Times, 12-12-23)
From China to Saudi Arabia, countries want the EU to reject pressure to confiscate over €200 billion of Russian assets (Politico, 4-2-24)
EU agrees in principle to give profits from frozen Russian assets to Ukraine (The Guardian, 3-21-24)