US Proposal to Unfreeze Russian Assets Faces EU Rejection

By Staff, Agencies

The US has proposed unfreezing billions of euros in Russian assets held in the European Union as part of efforts to advance Ukraine peace talks, the Financial Times reported Wednesday, citing sources familiar with the discussions. Moscow has repeatedly condemned the freezing of its assets as “theft” and warned of significant retaliation if the funds are confiscated.

The proposal was reportedly raised last week during negotiations in Miami involving US President Donald Trump’s envoy Steve Witkoff, his son-in-law Jared Kushner, and officials from Ukraine, France, Germany, Britain, the EU and NATO, according to four people familiar with the matter.

Washington is said to have floated several mechanisms for releasing the frozen funds under a comprehensive peace agreement, including transferring some of the money into a special-purpose vehicle overseen by the US. However, no final arrangements have been agreed upon, and discussions are continuing over how the funds could be used.

A US official told the Financial Times that Washington also asked Kiev to submit proposals for spending potential reconstruction funds and work with the World Bank to address corruption and establish financial accountability measures.

European backers of Ukraine reportedly rejected the initiative, refusing to relinquish control over the assets. Any such move would require unanimous approval from all 27 EU member states.

The proposal also reportedly startled European delegations and Ukrainian officials, some of whom questioned Washington’s intentions. One source familiar with the discussions said the initiative was explicitly ruled out.

German Chancellor Friedrich Merz publicly rejected any compromise, insisting that the assets should remain frozen in Europe and that decisions over them belonged to European governments.

Polish Foreign Minister Radoslaw Sikorski similarly declared that returning the funds to Russia would be unacceptable.

Western countries froze approximately $300 billion in Russian sovereign assets following the escalation of the Ukraine conflict in 2022, with most held at the Brussels-based Euroclear securities depository.

Although EU members agreed to use proceeds generated by the assets to support Ukraine, outright confiscation has faced resistance over concerns about legal consequences and damage to the bloc’s financial reputation.

Belgium has been a particularly strong opponent, warning that using the funds without Moscow’s consent could expose Euroclear and Belgian taxpayers to substantial legal claims.

Kremlin spokesman Dmitry Peskov said Moscow had no information about the reported US initiative but stressed that Russia would pursue the recovery of what it considers stolen assets through legal action and court proceedings, including efforts to hold those responsible accountable.

The report comes after Trump announced an agreement with Russian President Vladimir Putin last week to allow additional Russian diesel exports to ease pressure on US and global markets.

Separately, Reuters reported Wednesday that Washington is considering easing sanctions on some vessels associated with Russia’s so-called “shadow fleet,” which Western media says is used to transport Russian oil.