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In the final days of its tenure, the Biden administration is working to persuade European partners to use $300 billion in Russian assets as a potential bargaining chip in future peace settlement negotiations.
This was reported by CNN, citing two senior officials in the Biden administration.
Biden’s aides are striving to convince European partners to support the transfer of approximately $300 billion in Russian funds to a new escrow account, which would be accessible only as part of a peace agreement.
Most of these funds, belonging to Russia’s Central Bank, remain in European banks, while a portion is held in U.S. banks.
The goal of this move is to send a clear message to Moscow, one senior Biden official stated: “If you want your money back, you’ll have to come to the table and negotiate.”
Biden administration officials have closely consulted with the national security team of incoming President Donald Trump, including Senator Marco Rubio, who is expected to become Secretary of State, and Republican Mike Waltz, a contender for National Security Advisor.
The Trump camp, according to individuals familiar with the matter, generally supports this strategy, viewing the frozen funds as a new incentive for Russia to engage in negotiations.
Europeans, however, are less enthusiastic about the idea, expressing concerns over potential violations of international law if banks were to fully confiscate Russian assets.
Just days before the transfer of power in Washington, Europeans remain skeptical about the principle of confiscating frozen Russian assets, sources told CNN, making it unlikely that any agreement will be reached before Trump takes office.
In a recent interview, President Volodymyr Zelenskyy stated that he had proposed to Trump the use of the $300 billion in frozen Russian assets to strengthen Ukraine’s military as a form of security guarantee Ukraine seeks in exchange for agreeing to end the war.
It is worth noting that on January 10, Ukraine received the first tranche of €3 billion from the funds allocated by the European Union as part of the G7’s joint loan for Ukraine, with repayments planned to utilize frozen Russian assets.
At the end of December, Ukraine also received the first tranche of the planned $20 billion contribution from the United States.
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