Congress tees up a plan to seize Russian yachts and properties in the US — and sell them for Ukraine aid

• Bipartisan lawmakers are gearing up to introduce a bill to seize Russian elites' assets, including yachts.
• The "Yachts for Ukraine" Act would sell off those assets and use the cash to provide aid to Ukraine.

Lawmakers are gearing up to introduce a new bill that would seize Russian elites' yachts and assets, further intensifying the US' economic sanctions on Russia amid its invasion of Ukraine.

The "Yachts for Ukraine" Act would permit authorities to seize any property held by Russian elites in the US that is valued above $5 million. That includes bank accounts, real estate, and the superyachts that have become synonymous with Russia's billionaire class.

The bill, which is led by Democratic Rep. Tom Malinowski of New Jersey and Republican Rep. Joe Wilson of South Carolina, would also allow the US to sell the seized assets and use the cash to aid Ukraine. Funds from such sales could be used on post-conflict reconstruction in Ukraine, humanitarian support, weapons for Ukraine's armed forces, provisions for refugees, and technology goods. Cash could also be diverted to humanitarian assistance for Russians, "including democracy and human rights programming and monitoring," according to the bill.

Authority provided by the bill would last for two years after its passage, giving President Joe Biden prolonged power over Russian oligarchs parking their wealth in the US.

The idea could gain further bipartisan traction in Congress. Rep. Pramila Jayapal of Washington said she was "absolutely" on board.

"I just think it's important to allow for them to feel the consequence and the cost of what Vladimir Putin has done with violent aggression in Ukraine," Jayapal, chair of the House Progressive Caucus, told Insider.

"I think it's a good idea to seize assets of those close to Putin," Republican Sen. Rob Portman of Ohio told Insider. "Other countries are doing it, including Germany yesterday. If Germany is doing it, that must mean everybody is doing it."

Western countries have been piling sanctions on Russia

Western sanctions have been growing increasingly intense, causing the value of Russia's ruble to plummet and setting the country up for a potential recession within months. President Vladimir Putin himself has been directly sanctioned by the US, EU, and UK — a more symbolic condemnation.

Some of those sanctions have indeed reportedly targeted yachts. Forbes reported that Germany seized a $600 million mega-yacht belonging to Russian billionaire Alisher Usmanov. Other yachts belonging to Russian billionaires have sailed to smoother waters, with at least five either traveling around or parked in the Maldives — which doesn't have an extradition treaty with the US — according to Reuters.

At least 10 Russian oligarchs have been targeted by US sanctions, and the EU has also sanctioned some oligarchs and businessmen. Some of the oligarchs in the EU's crosshairs have pushed back, with businessman Mikhail Fridman telling Reuters that "sanctions are groundless and unfair."

These Russian-owned yachts must be in the US' territorial waters in order for the US to seize them, Benjamin Maltby, partner at UK-based Keystone Law who specializes in superyacht and luxury asset law, told Insider. But considering that the White House already forewarned of these sanctions in a Tweet last week, he said that Russian owners could try to make a run for Russia itself.

Consider those who have already traveled to the Seychelles and Maldives. "Safe spaces are going to be few and far between," Maltby said. He thinks these small island nations may not want be seen colluding with Russian oligarchs to defeat sanctions and could choose to take action following the US' sanctions.

Biden hinted at the US's seizure plans during his first formal State of the Union address on Tuesday. The president said the US would join much of Europe in wresting control of Russian yachts, luxury apartments, and private jets.

"We are coming for your ill-begotten gains," he added in comments directed at Russian oligarchs.

Other measures aim to weaken Russia's ability to finance its invasion. The US and European allies on Monday cut Russia's central bank off from accessing foreign-denominated reserves, essentially freezing some $630 billion in Russian funds held internationally. The move also forces Putin and the Kremlin to find new partners for bolstering the ruble's value.