CNN: The US is persuading Europe to seize frozen Russian assets and return them only after a peace agreement with Ukraine

The administration of the US President Joe Biden, in the final days of his presidency, is trying to convince European allies to confiscate about €300 billion in frozen Russian assets as a lever to put pressure on Moscow.

CNN reports this, citing sources.

Senior Biden aides are assuring Europeans that the frozen assets should be transferred to a new escrow account that will be returned to the Russians only after a peace deal with Ukraine. The money belongs to the Russian Central Bank and has been frozen since the start of Russia’s full-scale invasion. Most of it is held in EU banks.

The seizure of assets, according to the Americans, was supposed to send the following message to the Kremlin: "If you want your money back, youʼll have to come and talk".

Biden administration officials have consulted with President-elect Donald Trump’s national security team, including Sen. Marco Rubio, Trump’s nominee for secretary of state, and national security adviser Mike Waltz, on the idea. The team has generally supported the strategy that the seized money could give Russia a new incentive to come to the negotiating table.

However, European allies remain skeptical about the idea of seizing Russian assets, making it highly unlikely that the Biden administration will be able to reach a deal on this within a week.

American officials suggest that the leader of Germanyʼs Christian Democratic Union party and candidate for chancellor Friedrich Merz is open to the idea of confiscation, but the election will not be held until February 23.

President Joe Biden wanted to discuss the confiscation with Italian leaders and Ukrainian President Volodymyr Zelensky during a meeting in Rome, but was unable to attend due to the massive fires in Los Angeles.

The US Secretary of State Anthony Blinken stressed that the current administration wants to be sure that if the Trump administration decides to negotiate, it will do so from "a position of strength and that President Trump can get the strongest deal possible".

Frozen Russian assets

The value of frozen Russian sovereign assets in the EU is almost €211 billion. In total, the European Union, the G7 countries and Australia have frozen approximately €260 billion in securities and cash.

In October 2024, the EU Council finally approved a loan of up to €35 billion to Ukraine. The money is the blocʼs contribution to a G7 initiative to provide Ukraine with a $50 billion (€45 billion) loan, to be repaid with the proceeds from frozen Russian assets. The US contributed $20 billion (€18 billion) to the initiative.

The funds are being transferred “through various channels” — both to replenish the Ukrainian budget, and for military assistance and the restoration of Ukraine’s infrastructure. Reuters notes that Ukraine will receive all the money under the loan by the end of 2027.

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