Washington to Leverage Frozen Russian Assets in Securing Ukraine-Russia Peace Deal

The U.S. is seeking to block Europe from using frozen Russian sovereign assets to finance Ukraine’s weapons purchases, arguing the funds should instead be preserved as leverage to push both Moscow and Kyiv toward a negotiated settlement.

Washington has urged several European Union states to reject a proposal to provide Ukraine with a large loan backed by the frozen assets, Bloomberg reported, citing European diplomats. U.S. officials told their European counterparts the money should be reserved for potential peace talks.

The move comes as Europe’s ability to continue financing Ukraine is under strain after years of military and economic support, while U.S. officials have signaled that Washington will no longer provide open-ended aid at previous levels. Economists tracking the issue say confiscation of Russian sovereign assets is now one of the few remaining funding options for Europe to sustain support for Kyiv, though it faces legal and political resistance within the EU.

Belgium, where a large share of the frozen assets are held through international financial clearing systems, has opposed full confiscation, citing legal liability and the risk of Russian retaliation, according to European officials cited by Bloomberg.

The assets, valued at hundreds of billions of dollars, remain central to Western efforts to pressure Russia while sustaining support for Ukraine without escalating legal and financial risks.