The Biden administration is actively working to persuade European countries to support the transfer of about $300 billion in frozen Russian central bank assets to a special account. These funds can only be unblocked as part of a future peace agreement.
Points of attention
- The Biden administration is actively working to increase pressure on Putin through the confiscation of Russian assets and is proposing to transfer frozen funds to a special account.
- European partners express concern about the direct confiscation of Russian assets by banks, but the US is ready to provide Ukraine with $15 billion from frozen Russian assets for the PEACE in Ukraine project.
- Future President Donald Trump has supported the idea of a quick end to the war with Russia, but the initiative may contradict international law and complicate agreements.
- Ukraine plans to receive $15 billion from frozen Russian assets for the development of social and humanitarian projects, as part of a broader aid program from the United States.
- Biden's meeting with Zelensky, during which the frozen assets were planned to be discussed, was canceled due to the emergency situation in Los Angeles, but Ukraine has already signed an agreement with the World Bank to use these funds.
US proposes to seize all Russian assets to increase pressure on Putin
As the media reports, representatives of the Biden administration have already held consultations with the team of President-elect Donald Trump. In particular,
Marco Rubio (designate for Secretary of State) and Mike Walz (future National Security Advisor) have expressed general support for this strategy. Trump, according to sources, is interested in a quick conclusion to the war, which he considers protracted.
European partners are concerned that direct seizure of Russian assets by banks could violate international law, making it difficult to reach any agreement before Trump takes office.
Friedrich Merz, a potential German chancellor and leader of the Christian Democratic Union party, has shown some willingness to consider this initiative, but is not currently in office.
It is noted that Joe Biden planned to raise the issue during a meeting with Volodymyr Zelensky in Rome. However, the event was canceled due to the emergency situation in Los Angeles. Biden's phone conversation with Zelensky last Friday touched on various issues, but it is not known for certain whether the topic of frozen assets was discussed.
US to provide Ukraine with $15 billion from frozen Russian assets
As reported by Prime Minister of Ukraine Denys Shmyhal, the Ministry of Finance of Ukraine and the World Bank signed an agreement that provides for the use of these funds within the framework of the PEACE in Ukraine project.
The financial package is part of a larger initiative in which the United States is providing Ukraine with $20 billion under the G7 program.
The funds will be used for social and humanitarian expenses.
