Russia's Frozen Assets: A Bargaining Chip for Ukraine's Reconstruction?

Russia is considering the possibility of using $300 billion of frozen sovereign assets for Ukraine's post-war reconstruction, contingent on a portion being allocated to Russian-controlled areas. Preliminary discussions aim to explore potential peace deal compromises as Western leaders debate the assets' future amid geopolitical tensions.

Discussions have emerged regarding Russia's potential use of $300 billion in frozen sovereign assets for Ukraine's reconstruction. Sources suggest Russia may consent if a segment benefits regions under Russian control. The assets were originally blocked by the United States and allies following Russia's 2022 invasion of Ukraine.

The proposal, part of early dialogue between Moscow and Washington, highlights efforts to broker a peace deal. Russia's condition involves accountability to ensure funds contribute to rebuilding efforts. Western leaders remain divided, facing legal and diplomatic complexities in deciding asset fates amid global economic uncertainties.

Despite ongoing debates, Russia's expectations include lifting the freeze and negotiating asset allocation while adhering to international sanctions. Both sides acknowledge the challenges, emphasizing the sensitive nature of these preliminary conversations. Further discussions are anticipated to address geopolitical and economic implications of potential compromises.

(With inputs from agencies.)