U.S. negotiators have proposed releasing some of Russia’s frozen sovereign assets into a Washington-controlled financial fund, but European officials rejected the idea amid concerns that easing financial pressure on Moscow could undermine efforts to end the war in Ukraine.
By yourNEWS Media Newsroom
The Trump administration has proposed unfreezing a portion of approximately €260 billion in Russian government assets immobilized after Moscow’s 2022 invasion of Ukraine, seeking to encourage renewed peace negotiations despite opposition from European allies.
The proposal, presented by U.S. special envoy Steve Witkoff and Jared Kushner, President Donald Trump’s son-in-law, would involve transferring some of the frozen funds into a special-purpose financial vehicle overseen by Washington.
According to a Financial Times report published October 14, the proposal emerged during discussions in Miami involving representatives from Ukraine, France, Germany, Britain, the European Union and NATO.
Four people briefed on the negotiations told the newspaper that American officials outlined several possible arrangements for releasing the assets as part of a broader peace agreement with Russia.
European representatives rejected the proposal, opposing both the transfer of control to Washington and any arrangement that could return frozen funds to Moscow.
A U.S. official acknowledged that the assets had been discussed as part of a comprehensive settlement, although decisions about how the money would be released and used remained unresolved.
The proposal represents another effort by Trump to restart negotiations between Moscow and Kyiv after previous diplomatic initiatives failed to secure an agreement ending the war.
Western governments froze approximately €260 billion in Russian sovereign assets following President Vladimir Putin’s full-scale invasion of Ukraine in February 2022. Most of the money remains under European jurisdiction, making cooperation from EU governments essential to any proposed release.
Rather than returning the funds to Russia, European governments and other Group of Seven nations have used income generated by the immobilized assets to support Ukraine.
Those arrangements have helped finance approximately €45 billion in loans to Kyiv, with repayment backed by proceeds from the frozen Russian reserves.
European leaders have also maintained that Russian assets should remain available to support Ukraine’s reconstruction if Moscow fails to provide reparations for damage caused by the war.
German Chancellor Friedrich Merz has emphasized that Europe should retain control over the funds rather than transfer them to an American-supervised arrangement.
Under existing EU procedures, releasing the assets would require unanimous agreement among the bloc’s 27 member states, creating a substantial obstacle to the administration’s proposal.
The Reuters news agency reported that European delegates had rejected the American initiative, although Reuters could not independently verify the Financial Times’ original account.
Washington has also reportedly asked Ukraine to prepare a plan explaining how financial assistance would be spent, including measures developed with the World Bank to strengthen transparency and prevent corruption.
The discussions come amid growing disagreements between the United States and its European allies over the administration’s approach to Russia.
Earlier this month, Trump reached an agreement allowing Russian diesel exports to U.S. and international markets, presenting the arrangement as a way to lower energy prices and encourage Moscow to return to negotiations.
Under the agreement, Russia would initially supply more than 2.25 million barrels of diesel, providing additional fuel to markets facing elevated prices.
Witkoff and Kushner reportedly informed Ukrainian officials about the arrangement during the Miami discussions, arguing that limited economic incentives could help restart negotiations with Putin.
The American envoys also urged Ukraine to stop attacking Russian oil refineries, suggesting Washington could then press Moscow to reciprocate with steps toward reducing hostilities.
Ukrainian officials expressed skepticism, questioning whether providing Russia with economic benefits would produce meaningful concessions.
Italian Prime Minister Giorgia Meloni criticized the diesel arrangement Wednesday, warning that it could weaken Western sanctions and provide Moscow with additional revenue while the war continues.
Meloni described the agreement as a “very risky choice,” according to Reuters, arguing that economic cooperation with Russia risks undermining efforts to pressure Putin into ending the conflict.
Trump has defended the diesel agreement as a means of easing energy costs, particularly as Republicans face political pressure over high fuel prices ahead of the November 3 midterm elections.
Ukrainian President Volodymyr Zelenskyy has also voiced growing frustration with Washington, saying Wednesday that it was painful when Trump appeared to favor Russia’s position.
Zelenskyy warned that Ukraine was losing support from a powerful partner at a critical stage of the war, as Russian attacks continued and diplomatic efforts remained stalled.
The disagreement underscores a fundamental difference in negotiating approaches. Washington has explored financial incentives intended to bring Russia back to the table, while European governments and Ukraine have generally favored maintaining economic pressure until Moscow agrees to acceptable peace terms.
With European officials rejecting the proposed asset transfer and no agreement announced on the use of Russian sovereign funds, the latest American initiative faces significant obstacles.
The dispute leaves Trump searching for another diplomatic opening as the war continues and Western allies remain divided over how much economic relief, if any, Russia should receive before agreeing to end its invasion.
Original article
Comments