Russia Proposes Allocating $300 Billion for Ukraine Reconstruction as Part of War Settlement Talks

Russia Proposes Allocating $300 Billion for Ukraine Reconstruction as Part of War Settlement Talks

Moscow, February 21, 2025: According to sources, Russia may agree to allow the use of its $300 billion in frozen sovereign assets held in Europe for Ukraine's reconstruction, but with the condition that part of the money is spent in regions controlled by Russia.

On February 19, Russian and U.S. officials held their first face-to-face talks in Riyadh, Saudi Arabia, aimed at ending the Ukraine war. Both U.S. President Donald Trump and Russian President Vladimir Putin have expressed hopes to meet soon. After Putin sent troops into Ukraine in 2022, the United States and its allies prohibited transactions with Russia’s central bank and finance ministry, blocking $300-$350 billion of Russian sovereign assets, mostly in government bonds held by European, U.S., and British securities depositories.

According to sources, discussions between Russia and the United States are still in the early stages. However, one idea being discussed in Moscow is that Russia may later propose using a large portion of the frozen assets for Ukraine’s reconstruction if a peace agreement is reached. Many parts of eastern Ukraine have been devastated by the war, and millions of Ukrainians have fled to European countries or Russia. A year ago, the World Bank estimated that reconstruction and recovery would cost $486 billion.

No further details have been disclosed about the talks, and sources have spoken anonymously due to the sensitivity of the discussions. The Kremlin has refused to comment on the matter.

If Russia agrees to use the frozen assets for reconstruction, it could mark a significant turning point in peace talks and agreements related to the end of the war, with some specific terms of agreement possibly being reached between Russia and the United States.