Reuters: Russia may allow Ukraine to use $300 bln in frozen assets

Russia may agree to the use of $300 billion in sovereign assets frozen in Europe for Ukraine's reconstruction but will insist that part of the funds be spent on occupied territories, Reuters reported, citing informed sources.

According to the report, Moscow is discussing the possibility of offering a significant portion of the frozen assets for Ukraine's recovery as part of a potential peace deal.

One source stated that Russia might approve the use of up to two-thirds of the reserves for Ukraine's reconstruction, provided accountability guarantees are in place. The remainder could be allocated to Russian-occupied Ukrainian territories.

Another source noted that Russia is open to using these funds for rebuilding Ukraine, but it is too early to discuss their potential distribution.

A different source, close to the Kremlin, told Reuters that Russia would still demand the unfreezing of its assets as part of a gradual easing of sanctions.

It remains unclear whether the idea of using frozen assets was discussed between Russian and U.S. delegations during a meeting in Saudi Arabia.

After Russia launched its full-scale war against Ukraine, the United States and other countries banned transactions with Russia's central bank and finance ministry, blocking $300-350 billion in sovereign Russian assets.

The frozen assets primarily consist of European, American, and British government bonds held in European securities depositories.