Russia may use some of its billions of frozen assets to support Ukraine’s reconstruction efforts, but only if the funds are spent in territories currently occupied by Russian forces. This proposal comes as Moscow holds talks with Washington about ending the Ukraine invasion.
Since 2022, Western countries have frozen around $300-350 billion of Russian sovereign assets due to sanctions. Now, Russia is exploring a potential peace agreement that could involve allocating part of these reserves towards Ukraine’s rebuilding.
One condition for this allocation is clear oversight measures. The remaining funds would be directed to the Russian-controlled parts of eastern Ukraine. Moscow has declined to comment on these discussions, citing the sensitivity of the matter.
Ukraine’s reconstruction costs an estimated $500 billion, according to a 2023 World Bank estimate. This idea suggests Russia’s willingness to negotiate, especially as Washington and Moscow explore ways to end the war.
However, other Western officials, including those in Germany and the European Central Bank, are hesitant about confiscating the funds, citing potential legal issues and undermining trust in the euro.
In contrast, former US President Trump has pushed for access to Ukraine’s mineral resources as repayment for US support. Russia argues that freezing sovereign reserves violates free market principles and damages global financial stability.
Source: https://www.kyivpost.com/post/47600