Russia could agree to using $300 billion of sovereign assets frozen in Europe for
reconstruction in Ukraine but will insist that part of the money is spent on the one-fifth of the country that Moscow’s forces control, three sources told Reuters.
Russia and the United States held their first face-to-face talks on ending the Ukraine war on Feb. 18 in Saudi Arabia and both U.S. President Donald Trump and Russian President Vladimir Putin have said they hope to meet soon.
After Putin sent troops into Ukraine in 2022, the United States and its allies prohibited transactions with Russia’s central bank and finance ministry, blocking $300-$350 billion of
sovereign Russian assets, mostly European, U.S. and British government bonds held in a European securities depository.
While discussions between Russia and the United States are at a very early stage, one idea being floated in Moscow is that Russia could propose using a large chunk of the frozen reserves for rebuilding Ukraine as part of a possible peace deal, according to three sources with knowledge of the matter.
Swathes of eastern Ukraine have been devastated by the war and hundreds of thousands of soldiers killed or injured on both sides while millions of Ukrainians have fled to European countries or Russia. A year ago, the World Bank estimated reconstruction and recovery would cost $486 billion.
The sources spoke to Reuters on condition of anonymity due to the sensitivity of the discussions and because discussions are only preliminary. The Kremlin declined to comment.
The idea that Russia may agree to using the frozen money to help rebuild Ukraine has not been previously reported, and may give an insight into what Russia is willing to compromise on as Moscow and Washington seek to end the war, at a time when Trump is pushing for U.S. access to Ukrainian minerals to repay Washington’s support.
Russia’s main demands to stop the fighting include a withdrawal of Kyiv’s troops from Ukrainian territory Moscow claims 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 Trump administration says Ukraine has unrealistic, “illusionary” goals.
Reuters could not establish whether the idea of using the frozen funds was discussed between Russia and U.S. counterparts in the Saudi meeting.
With Reuters inputs
