According to Reuters sources, Russia might be open to using frozen sovereign assets in Europe for Ukraine's reconstruction, with a condition that a portion of the funds be allocated to the areas controlled by Moscow. Diplomatic talks between Russia and the United States regarding the conflict in Ukraine took place on February 18 in Saudi Arabia. The freezing of Russian assets resulted from Russian military intervention in Ukraine in 2022. The proposal to utilize these funds for Ukrainian rebuilding as part of a potential peace agreement is still in early stages but could signify Russia's willingness to compromise in the peace negotiations.
Eastern Ukraine has suffered severe devastation due to the conflict, resulting in significant casualties and mass displacement of Ukrainians. Estimates suggest that the reconstruction cost could reach $486 billion. Discussions about the frozen assets are confidential, and the Kremlin has refrained from commenting on the matter. Russia's conditions for ending the conflict include the withdrawal of Ukrainian troops from the territories claimed by Moscow and the cessation of Ukraine's NATO aspirations, while Ukraine demands the withdrawal of Russian forces and seeks security assurances from the West.
Although it is unclear if the proposal was discussed during the Saudi meeting, the G7 has stated that the frozen Russian assets will only be unfrozen once Russia compensates for the damages caused in Ukraine. The details of how the funds could be divided for reconstruction purposes are still being deliberated, with considerations for accountability and contracting companies. The unsettling of the freeze on assets could be part of a broader sanctions relief strategy, involving complexities due to differing stances between the U.S. and European nations holding the majority of the frozen assets.
Given the sensitivity and early stages of the discussions, various sources have shared insights on Russia's potential willingness to use the frozen assets for Ukraine's rebuilding. Some suggestions include a portion of the reserves for Ukraine's restoration under a peace accord, with the remainder directed towards territories in eastern Ukraine regarded by Russia as part of its domain. The controversy surrounding such a proposition involves legal concerns and the preservation of the assets' value. Despite differing views among officials, negotiations are ongoing to explore feasible solutions.