The U.S. has proposed that Europe unfreeze some Russian assets — Financial Times
The United States has proposed that European countries unfreeze a portion of the frozen Russian state assets and transfer the funds to a special financial mechanism under Washington’s control. The initiative is intended to encourage Moscow and Kyiv to return to peace talks.
According to the publication, the proposal has met with resistance from European officials. Ukrainian officials have also expressed concern, questioning the wisdom of transferring control over Russian funds to the U.S.
This involves a portion of approximately €260 billion in Russian sovereign assets that were frozen in Western countries following Russia’s invasion in 2022. A significant portion of these funds is held in Europe.
According to the Financial Times, U.S. special envoys Steve Witkoff and Jared Kushner presented the initiative during a recent meeting in Miami. Representatives from Ukraine, France, Germany, the United Kingdom, the European Union, and NATO participated in the talks.
The U.S. side views the unfreezing of a portion of the funds as one possible incentive to resume the negotiation process between Ukraine and Russia. At the same time, European participants in the discussion did not support the proposal.
Among the main concerns are the risk that European countries could lose control over the assets, as well as the question of whether Russia would gain de facto access to its own funds without adequate safeguards. A decision to unfreeze assets at the European Union level requires the consent of all 27 member states.
After the outbreak of full-scale war, Western countries froze significant portions of the Russian Central Bank’s reserves. European governments are still debating how to use these funds to support Ukraine without creating additional legal and financial risks.
Currently, the G7 countries have agreed to provide Ukraine with loans, the repayment of which is secured by proceeds from frozen Russian assets. The use of the principal itself remains a much more contentious issue.
Washington has also called on Ukraine to identify potential uses for the funds and to cooperate with the World Bank to ensure transparency and prevent corruption. At the same time, it remains unclear exactly how the proposed financial mechanism will work and what guarantees its participants will receive.
Source: Financial Times
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