Putin offers frozen Russian assets in US to Trump’s peace board, Ukraine
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Russian President Vladimir Putin (above) also said he would talk about a possible US$1 billion donation to the Board of Peace with Palestinian President Mahmoud Abbas.
PHOTO: REUTERS
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MOSCOW - Russia’s President Vladimir Putin said he is ready to commit Russian assets that remain frozen in the US to rebuild Ukrainian regions damaged during the war after a peace treaty is concluded.
Mr Putin also said he could give US$1 billion (S$1.28 billion) from the US-based assets – frozen to punish him for his 2022 full-scale invasion of Ukraine – to US President Donald Trump’s proposed Board of Peace
The offer has been discussed with the US, Mr Putin said, and he plans to talk about it more on Jan 22 during a meeting with Trump envoys Steve Witkoff and Jared Kushner in Moscow.
“Even before we resolve the issue of participation in the Peace Council and its work, given Russia’s special relationship with the Palestinian people, I believe we could direct US$1 billion to the Peace Council from Russian assets frozen under the previous US administration,” Mr Putin said at a meeting with Russia’s Security Council.
“The remaining funds from our frozen assets in the US could also be used to rebuild territories damaged by the fighting after the conclusion of a peace treaty between Russia and Ukraine,” the Russian leader added.
Taken together, the moves amount to a Russian offer designed to appeal to the American President and avoid further economic penalties, paid for with money the Kremlin does not currently control.
With only about US$4 billion to US$5 billion of Russia’s assets held in the US, the suggestion also represents just a tiny fraction of the amount Ukraine would need to rebuild, and also a small slice of Russia’s total frozen assets, which are estimated at US$300 billion worldwide, most of which is held in Europe.
Russia has sought to avoid any escalating US penalties on itself or its trading partners, even as it shows little signs of willingness to alter the war Mr Putin launched against his eastern neighbour
Mr Trump has varied between faulting Mr Putin and Ukrainian President Volodymyr Zelensky as impediments to peace, and has threatened to slap tariffs and sanctions on Russian trading partners in moments where he has blamed the Kremlin.
The two sides remain far apart on several aspects of Mr Trump’s proposed peace plan, with Russia insisting on Ukraine giving up lands it does not currently control as part of any deal.
Ukraine and Russia have been trading attacks on energy infrastructure as Russia’s full-scale invasion of its neighbour is about to enter a fifth year, with Kyiv and Moscow remaining at an impasse over the proposed peace plan.
In February 2025, the total cost of reconstruction as well as economic and social support was estimated at around US$524 billion over the next 10 years.
The cost of reconstruction continues to increase.
This winter, Mr Putin has stepped up strikes on Ukraine’s power sector, leaving millions of people without heating and water
Mr Putin said he would talk about the possible US$1 billion donation to the Board of Peace with Palestinian President Mahmoud Abbas, whom he also plans to meet in person on Jan 22.
Mr Trump has invited dozens of world leaders to the board, a key element of his 20-point plan to bring lasting peace in Gaza.
He has also demanded that nations pay at least US$1 billion for permanent membership on the board. BLOOMBERG
