US Proposes Unfreezing Russian Assets to Restart Ukraine Peace Talks

The United States has proposed that European countries unfreeze some Russian sovereign assets immobilised after Moscow’s invasion of Ukraine and transfer them to a vehicle overseen by Washington in an attempt to revive peace talks. The idea was floated during discussions in Miami last week between Donald Trump’s peace negotiators and officials from Ukraine, France, Germany, the UK, EU and Nato, according to the Financial Times, which cited four people briefed on the matter.

The Proposal and European Rejection

The US suggested several possible methods for unfreezing the assets, including moving them into a new special-purpose financial vehicle overseen by Washington. A US official stated that the use of Russia’s frozen assets was discussed as part of a comprehensive peace deal, noting that the mechanisms for release and spending were still under discussion.

The plan was pitched by US special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner. European delegates rebuffed the proposal, with one person briefed on the talks stating, "They were told that this was just simply not going to happen." European officials present at the meeting said they were opposed to giving up any control over the assets and returning any of them to Moscow.

Asset Context and Legal Concerns

Western allies froze about €260bn of Russian state assets in 2022 in response to Vladimir Putin’s full-scale invasion of Ukraine, with most of that amount held in the EU. Ukraine has received a €45bn loan from G7 countries raised against the interest earned on the immobilised EU assets. However, many European capitals are opposed to using the underlying assets, citing legal concerns.

Leaders from the EU bloc late last year committed themselves to using the assets to pay for Ukraine’s reconstruction should Russia fail to pay war reparations. Any decision to unfreeze the assets would need EU27 consensus, which is unlikely. A similar proposal on the frozen assets was included a year ago in the Trump administration’s 28-point peace plan, which failed to gain traction.

Reactions from Moscow and Kyiv

Kremlin spokesperson Dmitry Peskov was quoted by Russian state media on Wednesday as saying Moscow would "make every possible effort to achieve the return of stolen assets." He added, "This includes legal work, court proceedings and judicial prosecutions."

The US official said Washington has asked Kyiv to provide a proposal on how any funds, from any source, would be spent and to work with the World Bank to implement reforms to combat corruption and create accountability. Ukrainian officials involved in peace talks said the issue had been discussed with the US side in previous meetings.

Why it matters

The proposal highlights a divergence in strategy between Washington and its European allies regarding the leverage available to end the war in Ukraine. While the US seeks to use economic incentives to bring Moscow back to the negotiating table, European nations maintain that the frozen assets should remain immobilised or be used for Ukraine's reconstruction, not returned to Russia. The rejection of the plan underscores the difficulty of achieving a unified Western approach to peace negotiations and the legal complexities surrounding sovereign asset seizure.

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Sources

• ft.com: US floats unfreezing some Russian assets to restart Ukraine peace talks
• centraloregondaily.com: US floats unfreezing some Russian assets to restart Ukraine peace talks, FT reports | National/World | centraloregondaily.com
• news.cgtn.com: US FLOATS UNFREEZING SOME RUSSIAN ASSETS TO RESTART UKRAINE PEACE TALKS - CGTN
• yahoo.com: US Floats Unfreezing Russian Assets to Revive Ukraine Peace Talks

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.