Frozen Russian Assets Belong to Ukraine, Not Its Allies: Zelensky

Ukrainian President Volodymyr Zelensky said on Sunday that frozen Russian assets should belong solely to Ukraine, not Kyiv’s international partners.

“Frozen Russian assets are our money. It is our money, not shared with our partners,” Zelensky said during a press conference at the “Ukraine. The Year 2025” forum in Kyiv.

Since Russia began its full-scale invasion of Ukraine in 2022, Western countries have used sanctions and other financial mechanisms to freeze between $300 billion and $350 billion of Russian sovereign assets, mostly government bonds held in the EU, the US, and the UK.

Since then, many discussions have been held on developing mechanisms to use these funds for Ukraine’s post-war rebuilding.

The war has left parts of eastern Ukraine in ruins, with hundreds of thousands of casualties and millions displaced. A year ago, the World Bank estimated that rebuilding Ukraine could cost nearly $500 billion.

Some Western officials, particularly in Germany and the European Central Bank, are hesitant about confiscating the funds. They warn that doing so could create legal problems and undermine trust in the euro. 

Reuters reported on Friday, that Russia might be open to using some of the billions in frozen assets for Ukraine’s reconstruction but with one condition: Part of the money must be spent in the territories currently occupied by Russian forces.

This offer comes just days after Russia and the US held their first in-person talks about ending Moscow’s Ukraine invasion on Feb. 18 in Saudi Arabia.

As for how the frozen funds are distributed, one source with knowledge of the discussions in Moscow said that Russia could accept up to two-thirds of the reserves going to the restoration of Ukraine under a peace deal, but only if there are clear oversight measures. 

The remaining funds would be directed to the Russian-controlled parts of eastern Ukraine, which Moscow now considers part of Russia.