US wants to bring Russia to negotiating table, using $300 billion in assets as leverage
The Joe Biden administration has proposed a plan to more securely block $300 billion in Russian assets frozen after Russia's full-scale invasion of Ukraine, aiming to incentivize peace negotiations, CNN reports.
The plan involves transferring these funds to a new escrow account that can only be unlocked as part of a peace agreement. This move is intended to pressure Russia into negotiating.
"If you want your money back, you’re going to have to come talk," explained one Biden administration official.
Senior officials from the Biden administration are closely consulting with the team of President-elect Donald Trump on this idea, including Senator Marco Rubio, the nominee for Secretary of State, and Congressman Mike Waltz, who is expected to be appointed as National Security Advisor.
Trump's team generally supports this strategy, believing it could expedite the end of the war.
However, European partners are skeptical due to potential violations of international law. U.S. officials suggest that Friedrich Merz, leader of Germany's Christian Democratic Union and a potential future chancellor, might support the idea, but he currently lacks the authority to do so.
Biden had planned to discuss this issue with Ukrainian President Volodymyr Zelenskyy during a meeting in Rome, but it was canceled due to a major wildfire in California. Instead, they held a phone call on January 10.
In 2024, G7 countries agreed to use a percentage of the frozen investments as a loan for Ukraine. The loan would be backed by the income from the frozen Russian assets and would be interest-free for Ukraine.
Zelenskyy has requested that these $300 billion in frozen Russian assets be transferred to Ukraine to bolster its military capabilities as a security guarantee.
The G7 has repeatedly stated that the unfreezing of Russian assets is linked to Russia paying reparations for the damage it has caused to Ukraine.