Russia is considering using $300 billion of its frozen assets for reconstruction in Ukraine as part of a possible peace deal, according to three sources. The proposal would allow Russia to use two-thirds of the funds for rebuilding Ukraine and one-third for territories under Russian control.
The idea has not been previously reported, but it could give insight into what Russia is willing to compromise on in its negotiations with the US. The US has prohibited transactions with Russia’s central bank and finance ministry, blocking $300-$350 billion of sovereign assets.
A year ago, the World Bank estimated that reconstruction and recovery would cost $486 billion. Discussions between Russia and the US are at a very early stage, but Moscow is exploring options for using the frozen reserves to help rebuild Ukraine.
Russia’s main demands include a withdrawal of Kyiv’s troops from Ukrainian territory claimed by Moscow and an end to Ukraine’s ambitions to join NATO. Ukraine says Russia must withdraw from its territory and wants security guarantees from the West.
The proposal is part of a broader effort to find common ground in the negotiations, but it faces challenges, including differences between the US and Europe over how to manage the frozen assets. Some analysts believe that a lifting of the freeze could require the European side to fully back the current stance of the US aimed at dialog with Russia.
The proposal has sparked debate among experts, with some saying it is an optimistic scenario. Others argue that it would require accountability guarantees to ensure that the funds are used effectively in Ukraine.
Source: https://www.reuters.com/world/europe/russia-could-concede-300-bln-frozen-assets-part-ukraine-war-settlement-sources-2025-02-21