Lisa McCormick wants to transfer frozen Russian assets to Ukraine

Liberal New Jersey Democrat Lisa McCormick has endorsed seizing $325 billion in frozen Russian bank assets and transferring them to Ukraine as a path to aid the European democracy without further burdening American taxpayers.

"The United States should do everything it can to help Ukraine defend itself against Russian aggression," said McCormick. "But we must also do it in a way that does not burden American taxpayers. This proposal would allow us to provide Ukraine with the aid it needs without asking our citizens to pay for it."

Under McCormick's proposal, the United States would seize the frozen Russian bank assets and transfer them to a trust fund. The trust fund would be used to provide Ukraine with military and humanitarian assistance.

"Russia's war on Ukraine is a crime against humanity," said McCormick. "We must hold Russia accountable and help Ukraine rebuild. My proposal is a way to do both without burdening American taxpayers."

After Secretary of State Antony Blinken said that Washington would transfer to Ukraine $5.4 million in "assets seized from sanctioned Russian oligarchs, which will now be used to support Ukrainian military veterans" Kremlin spokesman Dmitry Peskov said, "This is hard to imagine and it goes against everything in international law and those countries' national law. But as soon as an opportunity presents itself, we will defend our rights."

McCormick is a Democrat with a long record of involvement in politics often clashing with corrupt New Jersey political bosses.

McCormick spearheaded anti-gun violence, consumer protection, and banking reform efforts for the northern New Jersey chapter of MoveOn.org, served on the legislative staff of now-Senate President Nicholas Scutari, and was the candidate for County Clerk who led the anti-establishment Democrats for Change team, which captured 47 percent of the vote in Union County's 2010 primary election.

As the only New Jersey Democrat with the courage to challenge US Senator Bob Menendez, McCormick earned four of ten votes cast in the 2018 primary election.

McCormick's proposal has been praised by some foreign policy experts, who say it would be a creative and effective way to aid Ukraine. However, it has also been criticized by some conservatives, who say it would be unfair to seize the assets of Russian citizens who are not responsible for the war.

"It’s an extremely bad idea, one which would undermine America’s rule of law while impeding peace between Russia and Ukraine," said Doug Bandow, a senior fellow at the Cato Institute who worked as special assistant to President Ronald Reagan.

In an article that appeared in The American Conservative on May 12, 2022, Bandow said, "Nothing justifies allowing the president to seize property based on an accusation and transfer it to someone not harmed by the property owner. After all, not every person or organization tied to Russia bears responsibility for the attack on Ukraine or is a friend of Vladimir Putin and the ruling regime."

"The Bible’s Eighth Commandment prohibits thievery or stealing," said Bruce Fein, an associate deputy attorney general during the Reagan administration, who was also critical of McCormick's proposal.

Despite the criticism, McCormick is confident that her proposal could gain traction in Congress if citizens encourage their representatives to implement the idea.

"This is a common-sense solution that will help Ukraine without burdening American taxpayers," said McCormick.

The United States, European Union (EU), and other governments are considering whether to use seized Russian assets to fund Ukraine’s reconstruction and recovery, the cost of which could top $1 trillion.

A new joint assessment released in March by the Government of Ukraine, the World Bank Group, the European Commission, and the United Nations, estimated that the cost of reconstruction and recovery in Ukraine has grown to $411 billion.

Since February 2022, the World Bank Group has mobilized over $38 billion in financial support to Ukraine, of which over $29 billion has been disbursed as of October 10, 2023.