**Russia May Offer Frozen Assets for Ukraine’s Reconstruction**
Russia may be willing to use some of its $300 billion in frozen assets to help rebuild Ukraine. This could happen as part of a potential peace deal, according to Reuters.
The idea is being discussed during negotiations between US and Russian officials. These talks started after the two sides met on February 18 in Saudi Arabia.
**Conditions for Using Frozen Assets**
One source said Russia might agree to use up to two-thirds of its frozen assets for Ukraine’s reconstruction. However, this would only happen if there were guarantees that everything was being done correctly.
The remaining funds would be used to rebuild Russian-occupied territories in eastern Ukraine. Moscow claims these areas as part of Russia.
**Points of Disagreement**
Another source said using the frozen assets is one thing, but how the money is distributed and which projects get funding are big points of contention.
A Kremlin-linked source noted that Russia still wants a gradual easing of sanctions and for all its frozen assets to be released.
**Frozen Assets and Sanctions**
In 2022, over $300 billion in Russian central bank reserves were frozen. Most of these funds are held in Belgium’s Euroclear depository.
The G7 has said the money will stay frozen until Russia pays for the damage it caused in Ukraine.
The EU has already used some of the proceeds from the frozen assets to support Ukraine. In January, Ukraine received €3 billion as part of the EU’s Ukraine Facility.
**Ukraine and International Support**
The US and its G7 partners have pledged nearly $50 billion in loans to Ukraine. This money is backed by revenue from Russian assets.
Russia’s President Vladimir Putin declared four Ukrainian regions as part of Russia on September 30, 2022. Moscow’s latest position shows a possible shift in its approach to post-war financial settlements, but still insists on legitimizing its occupation of Ukrainian territories.
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