Reuters: Russia may give up frozen $300 billion to make deal with Ukraine
- Author:
- Liza Brovko
- Date:
Russia may agree to give up its $300 billion in frozen assets in Europe for the reconstruction of Ukraine in order to make a deal with it, but it will demand that the money also go to rebuilding the territories occupied by the Russians.
Reuters reports this, citing sources.
Such discussions, initiated by the Kremlin, are called “only preliminary”. Reuters was unable to determine whether the idea was discussed by the Russian and US delegations at the meeting in Saudi Arabia.
Last year, the World Bank estimated that reconstruction and recovery in Ukraine would cost $486 billion.
Following Russia’s full-scale invasion of Ukraine, the United States and Europe banned transactions with the Russian Central Bank and Finance Ministry, freezing $300 billion to $350 billion in Russian sovereign assets—mostly European, American, and British government bonds held at the European Securities Depository. Russia has previously called plans to use the frozen assets for Ukraine “plunder”.
Russiaʼs frozen sovereign assets have long been a subject of debate in the West, with some countries offering to hand them over to Ukraine under certain conditions, while others insist that doing so is illegal.
One Reuters source said Russia could hand over up to two-thirds of the assets that would go to rebuilding Ukraine as part of a peace deal. In return, Moscow would demand control over which companies receive future reconstruction contracts.
Another source close to the Kremlin said that Russia would still demand the unfreezing of assets if there was a gradual easing of sanctions.
- On February 18, Russia and the United States held their first talks in Saudi Arabia. No specific date was agreed upon for the meeting between Putin and Trump. Trump said it could happen “very soon”, and the Kremlin did not rule out the possibility that it could happen by the end of February. However, the parties agreed to create negotiating groups to end the war in Ukraine.
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