U.S. Urges Allies to Cut Tax on Profits from Frozen Russian Assets for Ukraine Reconstruction

The US calls on allies to reduce taxes on frozen Russian assets to fund Ukraine's reconstruction, as Congress considers bills on TikTok divestment and foreign aid. The G7 pledges to strengthen Ukraine's air defenses and urges China to stop supporting Russia's military.

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U.S. Urges Allies to Cut Tax on Profits from Frozen Russian Assets for Ukraine Reconstruction

U.S. Urges Allies to Cut Tax on Profits from Frozen Russian Assets for Ukraine Reconstruction

The United States is calling on its allies to reduce the tax on profits generated from Russia's frozen assets, with the aim of using these funds to support the reconstruction efforts in Ukraine. This development comes as the House of Representatives prepares to vote on separate foreign aid bills for Ukraine, Israel, and the Indo-Pacific region, all of which are anticipated to receive bipartisan support.

In addition to the proposed tax reduction, the House is also considering a bill that would mandate the use of frozen Russian sovereign funds held in the U.S. for Ukraine's reconstruction. The legislation includes a provision that would compel ByteDance, the Chinese company that owns TikTok, to divest its ownership of the popular social media platform within a year.

Meanwhile, the Senate has dismissed the impeachment articles against Department of Homeland Security Secretary Alejandro Mayorkas without proceeding to a trial. In a separate development, President Biden has announced plans to triple tariffs on Chinese-made steel and aluminum imports.

The House Financial Services Committee has also passed resolutions aimed at overturning recent regulatory actions taken by the Biden administration. However, these resolutions would likely face a presidential veto if they were to reach the President's desk.

Why this matters: The proposed use of frozen Russian assets for Ukraine's reconstruction highlights the ongoing efforts to support Ukraine in the face of Russia's military aggression. The potential divestment of TikTok ownership by ByteDance reflects the growing concerns over Chinese influence and data security issues related to the app.

The G7 major powers have pledged to strengthen Ukraine's air defenses to counter deadly Russian attacks. They have also urged China to stop supporting Moscow's military industry if it wants to maintain good relations with the West. U.S. Secretary of State Antony Blinken emphasized that China is the "primary contributor" to Russia's defense industry, while German Foreign Minister Annalena Baerbock stated that Berlin cannot tolerate China forging closer ties with Russia.

The G7 ministers also expressed their commitment to preventing the conflict between Israel and Iran from escalating out of control, while working to end the war in Gaza. They acknowledged the need to provide more assistance to Ukraine, which is struggling to hold off stronger Russian forces, and called for de-escalation in the Middle East.

Key Takeaways

  • US urges allies to reduce tax on Russia's frozen assets to fund Ukraine's reconstruction.
  • House to vote on foreign aid bills for Ukraine, Israel, and Indo-Pacific region.
  • Senate dismisses impeachment articles against DHS Secretary Alejandro Mayorkas.
  • Biden to triple tariffs on Chinese-made steel and aluminum imports.
  • G7 pledges to strengthen Ukraine's air defenses and urges China to stop supporting Russia.