Biden Seeking Additional Authorities to Target Russia Sanctions Evasion, Pursue Forfeitures

"These proposals would strengthen our whole-of-government approach -- along with those of our international partners -- by providing for expanded and expedited measures for investigating, prosecuting, and forfeiting assets of Russian oligarchs to be used for the benefit of Ukraine," Biden wrote in a letter to House Speaker Nancy Pelosi, D-Calif.

Under one proposal, the White House would create a new “streamlined administrative process” that would allow the Treasury Department and DOJ to seize property in the U.S. owned by sanctioned Russian oligarchs that “has a connection to specified unlawful conduct.” The White House said the forfeiture decision would be “reviewable in federal court on an expedited basis” and make it illegal for anyone to “intentionally possess proceeds” obtained from “corrupt dealings" with the Russian government.

Biden is also looking to close an existing “gap” in U.S. forfeiture authorities by allowing for forfeitures of property that Russian oligarchs use to “facilitate the evasion of sanctions.” Currently, the U.S. can seek forfeitures only of the proceeds from those sanctions violations.

Another proposal would allow the U.S. to use certain forfeited funds or assets to “remediate harms caused to Ukraine by Russian aggression.” The forfeited assets and funds would be taken from Russian sanctions or export control violators, the White House said. “That’s going to ensure that when the oligarchs' assets are sold off,” Biden told reporters, “funds can be used directly to remedy the harm Russia caused and help build Ukraine.”

Biden also proposed adding sanctions evasion as a crime under the definition of “racketeering activity” in the Racketeer Influenced and Corrupt Organizations Act. This would strengthen the ability to "investigate and prosecute" sanctions evasion by giving DOJ a “powerful forfeiture tool used against racketeering enterprises to dismantle organizations that enable violations of U.S. sanctions.”

Another proposal would “improve” America’s ability to work with other countries to “recover assets linked to foreign corruption." The proposal would specifically make “several amendments” to improve the U.S.’s ability to “enforce foreign restraint and forfeiture orders in the United States.”

Attorney General Merrick Garland applauded the proposals, saying they will give the U.S. "critical resources and tools to dismantle the criminal networks that enable sanctions evasion." DOJ said it has worked with other countries to seize about $625,000 "associated with sanctioned parties" since March.

The president's separate supplemental funding request includes proposals for “even more” shipments of “artillery, armored vehicles, anti-armored systems and anti-air capabilities” to Ukraine, Biden said. The request is necessary because the U.S. has “almost exhausted” its drawdown authority for military supplies to Ukraine, he said, which was authorized by Congress in a spending bill earlier this year (see 2204220011, 2204150017 and 2203300016). Current U.S. weapons exports and transfers to Ukraine are “moving with unprecedented speed," Biden said, and "much of the new equipment we've announced in the past two weeks has already gotten to Ukraine, where it can be put to direct use on the battlefield.” The funding package asks for an additional $5 billion in drawdown authority for military equipment and services.

“I hope Congress will move on this funding quickly,” Biden said. “I believe they will.”

He disputed Russian President Vladimir Putin’s claim that U.S. sanctions are blocking Ukraine and Russia from exporting agricultural products to the rest of the world. “Simply not true,” Biden said. “Putin’s war, not sanctions, are impacting the harvest of food and disrupting the movement of that food by land and sea to nations around the globe that need it.”