Reuters: Russia may cede frozen $300 billion to reach deal with Ukraine
21 February 22:23
Russia may agree to give its $300 billion in assets frozen in Europe to rebuild Ukraine in order to reach a deal with it, but will demand that the money also go to rebuild the territories occupied by Russia.
This was reported by Reuters, citing sources, Komersant ukrainskyi reports.
Such discussions, initiated by the Kremlin, are called “only preliminary.” Reuters was unable to find out whether the Russian and US delegations discussed this idea at the meeting in Saudi Arabia.
Last year, the World Bank estimated that Ukraine’s reconstruction and recovery would cost $486 billion.
After Russia’s full-scale invasion of Ukraine, the United States and Europe banned transactions with the Russian Central Bank and Ministry of Finance, blocking $300-350 billion worth of sovereign Russian assets, mostly European, American and British government bonds held in the European Securities Depository.
Earlier, Russia claimed that plans to use frozen assets for Ukraine were “robbery.”
Russia’s frozen sovereign assets have long been a subject of debate in the West. Some countries offer to transfer them to Ukraine under certain conditions, while others insist that it is illegal to do so.
One Reuters source said that Russia could give up to two-thirds of the assets that would be used to rebuild Ukraine as part of a peace deal. In return, Moscow would demand control over which companies receive future reconstruction contracts.
Another source close to the Kremlin said that Russia would still demand that the assets be unfrozen if there is a gradual easing of sanctions.
