Reuters: Russia may agree to concede US$300bn in frozen assets as part of peace deal

Russia may agree to use US$300 bn of its frozen assets in Europe to rebuild Ukraine but will insist that part of the money be used to rebuild the territories it currently controls (about 20% of Ukraine).

As reported by Reuters, after Russia's invasion of Ukraine in 2022, the United States and its allies banned financial transactions with the Russian Central Bank and the Ministry of Finance, blocking US$300-350 bn of Russian assets.

Most of these funds are held in European depositories in the form of European, American, and UK government bonds.

Despite the fact that negotiations between Russia and the US are at a very early stage, Moscow is considering using a significant portion of the frozen reserves to rebuild Ukraine as part of a potential peace deal, the sources said.

The World Bank estimated last year that rebuilding Ukraine would cost US$486 bn.

The agency claims that the fact that Russia may agree to use frozen assets to rebuild Ukraine has not been previously reported.

"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," Reuters writes.

Russia intends to expand its powers that will allow it to confiscate frozen funds of foreign companies and investors.

US President Donald Trump is ready to double down on sanctions to compel Russia to end its war against Ukraine, his special envoy for Ukraine and Russia, Keith Kellogg, has said.