MOSCOW:
Russia could agree to use $ 300 billion of Sovereign Assets Frozen in Europe for Reconstruction in Ukraine but will insist Control, Three sources Told Reuters.
Russia and the united states help their first face-to-face talks on ending the ukraine war on Feb. 18 in Saudi Arabia and Both Us President Donald Trump and Russian President Vladimir Putin Have Said They Hope 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 Soveield Russian Assets, Mostly European, US and British Government Bonds Held in A European Securities Depository.
While Discussions Between Russia and the united States are at a very early stage, one idea being floated in Moscow is that Russia could propose using a large process for the frozen reservilds for rebuild Part of a Possible Peace Deal, According to Three sources with Knowledge of the matter.
Swates of Eastern Ukraine Have Been Devastated by the War and Hundreds of Thousands of Soldiers Killed Or Injured on Both Sides While Millions of Ukrainians Have Fled to European Countryes or Russia. A year ago, The World Bank Estimated Reconstruction and Recovery would cost $ 486 billion.
The sources spoke to reuters on condition of anonymity due to the sensitivity of the discuses and beCAuse discusses are only preliminary. The kremlin declined to comment.
The idea that russia may agre to using the frozen money to help rebuild ukraine has not been previously reported, and may give an insight into what russia isesia is Moscow and Washington Seek to end the war, at a time when trump is pushing for us access to ukrainian minerals to repay washington's support.
Russia's main demands to stop the fighting include a withdrawal of kyiv's trops from Ukrainian territory moscow claims and an end to Ukraine's Ambitions to Join Nato. Ukraine says Russia must withdraw from its territory, and wants security guarantees from the west. The Trump Administration Says Ukraine has unrealistic, “Illusionary” Goals.
Reuters Could not establish whather the idea of using the frozen funds was discusceded between russia and us counterparts in the saudi meeting.
The group of seven stated in 2023 that Russian Sovereign Funds Will Remain Frozen Until Russia Pays for the Damage It Inflicted In Ukraine. Trump has said he would like Russia to return to the g7, a grouping of wealthy nations.
Russian Central Bank Governor Elvira Nabiullina said on Thursday the bank was not part of any talks on lifting sanctions or unfreezing of Russia's Reserve.
Russia has previously said plans to use the funds in Ukraine Amounted to Robbery.
The Ukrainian Foreign Ministry and the White House did not immomelyi respond to requests for comment. The British Foreign Office Declined to comment.
“Nothing about ukraine and the eu can be decided without ukraine and the eu,” said anitta hipper, a spokesperson for the european commission. She said the Eu and Member States Were Helping Ukraine Strengthen its position ahead of any talks, include with a new found of sanctions on Russia.
Renaissance Capital Lead Analyst Oleg Kouzmin said the differences between the united states and europe, which controls most of the assets, would be a lifting of the freeze.
“It would require the european side to fully back the current stance of the us aimed at dialog with russia,” Kouzmin said, calling such a Scenario “Vry Optimistic”.
Two Third Split?
Russia's Frozen Sovereign Assets Have Been The Subject of Intense Debate in the West With Some Proposing It Be Essentially Given to Ukraine Through a Complex “Repatiation Loan”.
One source with knowledge of the discussions in Moscussions in Moscow Said That Russia Cold Accept Up to two-Thirds of the reserves going to the reserve Guarantees.
The rest could go to the russian-contracted territories in Eastern Ukraine that Russia Now Considers to be Part of Russia, said the source.
Another source with knowledge of discusations said that MOSCOW BULD AGREE to Using the Money to Rebuild Ukraine but that it was too early to say what the possible divisration Two sources stressed that it was important to discus which companies would get future contracts for reconstruction.
A different source, close to the kremlin but not directly involved in the discussions, said that Russia would still demand the lifting of the freeze on the assets as part of Gradual Sans.
Several Western Officials, Especially in the German Government and European Central Bank, Have Been Reluctant to Simply Confiscate Sovereign Reserves, Warning Thaat SUCH ACUCH FACE CHALLD FACE CHALLD FACE LEGAL CHALLEGES And undermine the euro as a reserve currency.
Russian Officials Have Repeatedly Warned That The State Confiscation of Assets Goes Against Free Market Principles, Destroys Banking Security and Erodes Faith in Reserve Currency. In retaliation, russia has drafted legislation to confiscate funds from companies and investors from so-called unfriendly states, those that hat it with sanctions. The bill has not yet voted in russia's state duma lower house.
European freeze
At the time the assets was Frozen, Russia's Central Bank Said It Held It Held $ 207 Billion in Euro Assets, $ 67 Billion in Us Dollar Assets and $ 37 Billion in British Pound Assets.
It also Had Holdings Comprising $ 36 Billion of Japanese Yen, $ 19 Billion in Canadian Dollars, $ 6 Billion in Australian Dollars and $ 1.8 Billion in Singapore Dollars. Its swiss franc holdings were about $ 1 billion.
Russia reports its total gold and Foreign exchange reserves as Around $ 627 Billion, Including the Frozen Funds. The value of Russia's Frozen Assets Fluctates according to Bond Pries and Currency Movements.
The bank's biggest bondings were in the Sovereign Bonds of China, Germany, France, Britain, Austria and Canada. Russia's Gold Reserve was help in Russia.
Around 159 billion euros of the assets were managed by Belgian Clearing House Euroclear Bank as of Early Last Year, Euroclear Has Said.
While the freezing of the funds have angered moscow, some of russia's most outspocen war hawks have previously acrossed Controlled Territories Stay within Russia.
“I propose a solution. They pay this money towards our purchase of thatse territories, those lands that want to be with us,” said margarita simonyan, head of the russian state broadcaster Rt, in 2023.
The Russian-Constrolled Territories of Ukraine Account for About 1% of Russia's Gross Domestic Product, but some economists beLieve War ends. The regions Alredy Provide Around 5% of Russia's Grain Harvest.
(Except for the headline, this story has not been edited by ndtv staff and is published from a syndicated feed.)
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