European officials have rejected a US proposal to unfreeze some Russian state assets and place them under Washington’s oversight as part of efforts to restart Ukraine peace talks.
The proposal would affect part of approximately €260 billion in Russian sovereign assets frozen by Western allies, most of which are held in Europe. It would not transfer the entire amount.
Washington proposes, Europe pushes back
The Financial Times reported that American negotiators raised the idea during talks in Miami with Ukrainian and European representatives. One option involved moving funds into a special-purpose financial vehicle overseen by Washington.
A US official said the mechanisms and eventual use of the money remained under discussion as part of a broader peace agreement.
Germany’s Chancellor Friedrich Merz rejected handing over control, saying: “These are assets that are frozen in Europe and they should stay frozen in Europe.”
Why the money matters
Belgium-based Euroclear reported €202 billion related to sanctioned Russian assets on its balance sheet at the end of June 2026, according to its half-year results.
That figure is a dated institutional disclosure, while the €260 billion estimate covers assets immobilised across Western jurisdictions.
The distinction between the underlying assets and the income they generate is also important. Using interest proceeds does not automatically release the principal.
Related: Trump’s Diesel Deal Tests US Ties With Ukraine.
No agreement to release the assets
Unfreezing assets under EU sanctions would require agreement among all 27 member states, the FT reported. The proposal therefore remains a negotiating idea, rather than an approved transfer.
The dispute adds another division between Washington and Europe: whether frozen Russian wealth should remain leverage over Moscow or become part of an incentive to secure a peace agreement.
Disclosure: This article does not represent investment advice. The content is for informational and educational purposes only.
