US Pushes Europe to Confiscate Frozen Russian Assets as Leverage for Ukraine Peace Talks

The Biden administration is intensifying efforts to convince European allies to confiscate approximately €300 billion in frozen Russian assets.

The assets, largely held in European banks, belong to Russia’s Central Bank and have been frozen since the start of the full-scale invasion of Ukraine. The proposal is aimed at using these funds as leverage to pressure Moscow into peace negotiations with Ukraine.

According to CNN, US officials suggest transferring the assets to a special escrow account that would remain inaccessible to Russia until a peace agreement is reached. The administration views this strategy as a way to send a clear message to the Kremlin: to recover the funds, Russia must engage in meaningful dialogue.

The Biden administration has consulted with advisors to President-elect Donald Trump, including Senator Marco Rubio, the nominee for Secretary of State, and incoming National Security Advisor Mike Waltz. Sources indicate that Trump’s team supports the strategy, seeing it as a potential catalyst for ending the war. Trump himself has expressed interest in expediting a resolution to the war.

Despite US efforts, European leaders remain cautious about the proposal, citing potential violations of international law. High-ranking US officials acknowledge that securing European agreement within the Biden administration’s remaining tenure is unlikely.

Friedrich Merz, leader of Germany’s Christian Democratic Union and a candidate for Chancellor, is reportedly open to discussing asset confiscation, although his position will only be clarified after Germany’s elections in late February.

President Biden had intended to discuss the proposal with Italian leaders and Ukrainian President Volodymyr Zelenskyy during a planned meeting in Rome. However, this meeting was canceled due to large-scale wildfires in Los Angeles.

Secretary of State Antony Blinken emphasized that the current administration aims to ensure a smooth transition of this strategy to the incoming Trump administration, enabling it to negotiate from a position of strength.

Earlier, Ukrainian Foreign Minister Andrii Sybiha urged international partners to move from freezing to seizing Russian assets, emphasizing that using both profits and assets themselves is essential to support Ukraine’s defense and recovery. He described the step as a fair and legitimate way to hold Russia accountable for the damages caused by its invasion.