Europe rejects US proposal to transfer frozen Russian assets to Washington-controlled fund - FT
US negotiators proposed unfreezing some Russian sovereign assets held in Europe and transferring them to a financial vehicle controlled by Washington as part of efforts to revive peace talks over Ukraine, the Financial Times reported, citing four officials briefed on the discussions.
The proposal was presented by US President Donald Trump's envoys Steve Witkoff and Jared Kushner during an October 10 meeting in Miami attended by representatives of Ukraine, France, Germany, the United Kingdom, the European Union and NATO.
According to the FT, Witkoff and Kushner outlined several mechanisms for releasing some of the frozen funds, including transferring them to a new special-purpose financial vehicle overseen by the Trump administration.
European representatives rejected the proposal. The initiative reportedly surprised both European and Ukrainian officials and raised concerns about Washington's approach to pressuring Russia to end its war against Ukraine.
A US official told the FT that frozen Russian assets had been discussed as part of a comprehensive peace agreement and that their potential use remained under consideration. Various proposals had been floated for how the money could be used after the war, the official said.
German Chancellor Friedrich Merz insisted on October 15 that Russian assets frozen in Europe must remain there.
"These are assets that have been frozen in Europe — and they must remain frozen in Europe. This is our business, and we make the decisions on it," Merz said ahead of a European Council meeting in Brussels.
Western countries froze approximately €260 billion ($302 billion) in Russian sovereign assets following Moscow's full-scale invasion of Ukraine in 2022, with most of the funds held in the EU.
The assets have become a central issue in discussions over financing Ukraine's defense and reconstruction and ensuring Russia pays reparations for the damage caused by the war.
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