Photo: depositphotos
The United States has proposed that European countries unfreeze part of the Russian sovereign assets frozen after Moscow’s full-scale invasion of Ukraine and transfer the funds to a financial vehicle overseen by Washington to revive peace negotiations, the Financial Times reported on October 14, citing people familiar with the discussions. European delegates rejected the proposal.
The idea was presented last week in Miami by U.S. special envoy Steve Witkoff and Jared Kushner, President Donald Trump’s son-in-law, during talks involving representatives of Ukraine, France, Germany, the United Kingdom, the European Union and NATO.
Washington reportedly outlined several possible ways to unlock the assets, including transferring them to a newly established special-purpose financial vehicle under U.S. control.
An American official told the FT that the use of frozen Russian assets had been discussed as part of a comprehensive peace agreement. The mechanisms for releasing the funds and determining how they would be spent remain under consideration.
The proposal surprised European capitals and Kyiv, raising questions about Washington’s intentions and its approach to pressuring Moscow to end the war. European representatives opposed giving up control of the assets or allowing them to be returned to Russia.
“They were told that this simply would not happen,” one person familiar with the discussions told the FT.
A similar proposal appeared in the Trump administration’s 28-point peace plan last year but failed to secure support.
A U.S. official also said Washington had asked Kyiv to present proposals for spending funds from potential sources and to work with the World Bank on reforms aimed at combating corruption and ensuring accountability.
On October 14, Kremlin spokesperson Dmitry Peskov said Moscow would make every possible effort to recover its frozen assets, according to Russian media. He said this would involve legal work and court proceedings.
Western countries froze approximately €260 billion in Russian sovereign assets in 2022 in response to Russia’s full-scale invasion of Ukraine. Most of the funds are held in the European Union.
Ukraine and several European countries have called for the assets to be used to support Kyiv and finance reconstruction. The G7 countries have already arranged a €45 billion loan for Ukraine backed by proceeds generated by frozen Russian assets, while the underlying principal remains largely immobilized.
European governments have raised legal concerns about confiscating or transferring the principal. Any EU decision to unlock the assets would face significant political and legal obstacles, including the need for agreement among the bloc’s 27 member states.
Reuters reported that it could not immediately independently verify the FT’s account of the U.S. proposal.
