US to leverage Russia’s assets for peace negotiations
(MENAFN) The United States plans to treat frozen Russian assets as a bargaining tool in future talks over Ukraine, rather than confiscating them outright and transferring them to Kiev, Treasury Secretary Scott Bessent stated.
In remarks given on Wednesday, he noted that more than $300 billion in Russian funds have been immobilized across Western banks since the escalation of the conflict in 2022. While most of the money is held within Europe, US authorities control about $5 billion. Moscow has condemned the freeze, describing it as a “theft.”
Bessent suggested that the frozen funds are “part of the negotiation with [Russian President Vladimir] Putin,” adding that “I don’t think we should seize them immediately.” He further described the assets as “a chip on the table during this big negotiating process,” and indicated that they could eventually be used, at least in part, to support Ukraine’s reconstruction.
The issue has stirred intense debate across Western capitals, with Kiev pushing for immediate seizure and transfer of the assets. However, some European leaders and financial experts have warned that such actions could breach international law, damage investor confidence, and destabilize global markets.
For now, the European Union has chosen to direct only the profits and interest generated by the frozen funds toward Ukraine, a measure projected to provide over \$3 billion each year.
Although US lawmakers passed legislation last year granting authority to seize Russian state assets, Washington has so far refrained from exercising it, citing possible legal and financial fallout. Instead, the US and other G7 members agreed on a $50 billion loan to Ukraine backed by the interest proceeds from the immobilized funds.
The Kremlin has rejected any suggestion of surrendering rights to its frozen assets. Spokesman Dmitry Peskov reiterated that Moscow will continue defending its holdings and warned of “very serious judicial and legal consequences” if the West attempts to confiscate the money and hand it to Ukraine.
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