Anna Hartz
The idea of using frozen foreign assets to rebuild war-torn areas is not new.
After conflicts end, countries often turn seized or frozen funds toward reconstruction. In Ukraine, the question of Russia’s frozen money has become part of ongoing peace discussions.
300 Billion Euros Worth of Frozen Assets
On January 21, Russian President Vladimir Putin said Russia would consider using some of its financial assets frozen in the U.S. to restore territories damaged by military actions, reports The Kyiv Independent. These remarks came just before talks in Moscow scheduled for January 22 with U.S. Special Envoy Steve Witkoff and Jared Kushner, President Trump’s son-in-law.
Frozen Russian assets are estimated at around 300 billion euros worldwide. Most of the funds are held in Europe, especially Belgium. A smaller portion, about four to five billion dollars, is frozen in the United States. In recent months, U.S. officials have suggested these assets could help rebuild Ukraine once hostilities stop.
Despite ongoing peace efforts, Russia has continued its attacks. In early January, overnight missile and drone strikes killed at least four people and injured 25 others in Kyiv. Electricity was knocked out for hundreds of thousands, and heating systems were disrupted during freezing temperatures.
90% Ready
Witkoff met with Putin’s envoy, Kirill Dmitriev, in Davos on January 20 to discuss Washington’s peace plan. Both sides called the meeting constructive. The plan includes 20 points aimed at ending the war. Ukrainian and Western officials have worked for months on its details.
President Zelensky said the framework is “90% ready,” but Moscow has repeatedly rejected compromise. Ukraine has even signaled willingness to pause NATO membership if security guarantees are provided. Kyiv has also discussed moving troops away from areas that Moscow considers critical, including parts of Donetsk Oblast.
Donald Trump said on January 20 that he has struggled to broker a deal. He explained that negotiations often fail because one side is ready while the other is not. “When Russia is ready — Ukraine is not ready. When Ukraine is ready — Russia is not ready,” he said.
As talks continue, the use of frozen assets and the readiness of both sides remain key questions. Whether Russia will follow through on Putin’s proposal is still uncertain. Peace efforts depend on coordination and trust between Moscow, Kyiv, and Western mediators.
Sources: The Kyiv Independent
