Frozen Russian assets could be key to ending war in Ukraine, Reuters
Photo: Donald Trump (Getty Images)
During his presidential campaign, US-elected President Donald Trump claimed he could end the war in Ukraine within 24 hours. Trump calls one of the key reasons for such a step the US's reluctance to continue paying military and economic assistance to Ukraine, Reuters reports.
Trump suggested that, with financial backing from Europe, potentially using $300 billion in frozen Russian foreign currency reserves, he could negotiate favorable terms for ending the conflict with Russian dictator Vladimir Putin.
This prospect has raised concerns not only in Ukraine but also within the European Union and the United Kingdom. A deal that weakens Kyiv's position could jeopardize the security of the entire European continent. However, analysts believe that if Europe demonstrates its willingness to provide substantial financial support to Ukraine, it might prompt Trump to reconsider his plans.
European economic backing could also signal to Putin that the West remains committed to a prolonged conflict of attrition, with Ukraine capable of holding its defensive lines despite the ongoing war.
One potential funding option involves using frozen Russian assets. However, this approach faces legal and political obstacles: EU countries are concerned that seizing these assets could violate international law and undermine trust in the euro.
An alternative proposal is offering Ukraine a reparations-based loan. Under this framework, Kyiv would pledge its claims for compensation from Russia as collateral. If Moscow refuses to pay, the claims would transfer to G7 countries, which could then compensate Ukraine using the frozen assets.
Experts suggest that this approach could ensure long-term support for Ukraine, bolster the Western defense industry, and allow Trump to showcase his "peace through strength" foreign policy. However, implementing this plan would require unanimous agreement among all stakeholders and extensive coordination efforts.
Frozen Russian assets
Since Russia's full-scale invasion of Ukraine, Western countries have frozen approximately $300 billion worth of Russian Central Bank assets. Some of the profits from these assets are already being allocated to support Ukraine.
In particular, the United Kingdom will provide Ukraine with nearly $3 billion using revenue from frozen Russian assets.
