News Feed

Biden team seeks European support to leverage frozen Russian assets in talks with Moscow, CNN reports

2 min read
Biden team seeks European support to leverage frozen Russian assets in talks with Moscow, CNN reports
President Joe Biden addresses the Classroom to Career Summit in the East Room of the White House on Nov. 13, 2024, in Washington, DC. (Chip Somodevilla/Getty Images)

As the Biden administration prepares to leave office, it is reportedly urging European partners to support the transfer of frozen Russian central bank assets worth $300 billion to a special account as leverage in negotiations with Moscow, CNN reported on Jan. 15, citing anonymous administration officials.

The strategy reportedly aims to pressure Moscow by signaling the funds could only be reclaimed through negotiations with Ukraine.

"If you want to get this money, you will have to negotiate," a source told CNN.

The proposal involves moving the frozen assets, currently held primarily in European banks, to a deposit account from which withdrawals would only be allowed as part of a future peace deal with Ukraine.

Biden officials are reportedly discussing the plan with President-elect Donald Trump's team, including Secretary of State nominee Marco Rubio, and incoming National Security Adviser Mike Waltz. Both reportedly back the initiative, aligning with Trump's goal to expedite a resolution to the war.

European governments have reportedly expressed hesitancy about the plan, citing concerns over its compliance with international law. Confiscation of frozen Russian funds has been a contentious issue, and even using the assets' annual income — around $3.2 billion — required significant negotiation.

The European Union recently disbursed €3 billion ($3.09 billion) to Ukraine as part of a $50 billion G7 loan initiative. The EU's €20 billion ($20.6 billion) contribution to the program is partially funded by income from frozen Russian assets.

The U.S. has also contributed $20 billion toward the loan assistance, showcasing a concerted Western effort to support Ukraine financially while leveraging Russian assets.

Outgoing President Joe Biden expressed confidence on Jan. 10 in his administration's support for Ukraine, saying he did "all I could to help" while voicing hope for continued U.S. backing under Trump.

As the U.S. transitions to a new administration, the international community's stance on utilizing these assets may significantly influence diplomatic efforts to end Russia's war against Ukraine.

‘We know who the good guy is’ — Trump’s defense nominee grilled over war in Ukraine
Pete Hegseth’s nomination in November sent shockwaves through Pentagon corridors.
Article image
Avatar
Tim Zadorozhnyy

News Editor

Tim Zadorozhnyy is a news editor at The Kyiv Independent. Based in Warsaw, he is pursuing studies in International Relations, focusing on European Studies. Tim began his career at a local television channel in Odesa. After moving to Warsaw, he joined the Belarusian opposition media outlet NEXTA, starting as a news anchor and later advancing to the position of managing editor.

Read more
News Feed

The World Bank will provide $200 million over the next five years to prepare Ukrainian projects for large-scale reconstruction, the Economy Ministry announced on July 11. The funding will be available under the five-year PREPARE program with the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

Video

Since the beginning of Russia’s full-scale invasion of Ukraine in 2022, war has become a daily reality for thousands of Ukrainian children. Some Ukrainian military units, such as the Azov Brigade, offer boot camps for teenagers to teach them the basics of self-defense, first aid, dry firing, and other survival skills — helping them prepare for both the realities of today and the uncertainties of the future.

Show More