Russian President Vladimir Putin has signaled a readiness to deploy Russian state assets frozen in the United States both to support post-war reconstruction in Ukraine and to contribute to U.S. President Donald Trump’s proposal for a “peace parade” on Gaza, in what analysts see as a calculated effort to ease pressure from Washington while reshaping negotiations on Europe’s deadliest conflict since World War II.
Putin uses frozen assets in the US
Putin told a meeting of the Security Council of Russia that Moscow is ready to provide funds from Russian assets immobilized in the United States after the invasion of Ukraine in 2022. He suggested that after the conclusion of a peace treaty, the remaining funds could be directed to the reconstruction of Ukrainian territories damaged during the war.
“The remaining funds from our frozen assets in the US could also be used to restore the territories damaged by the fighting after the conclusion of the peace treaty between Russia and Ukraine,” Putin said.
He added that Russia could immediately commit $1 billion of those frozen assets to Trump’s proposed Peace Council, even before Moscow’s formal participation in the body is finalized.
“Even before we resolve the issue of participation in the Peace Council and its work, given Russia’s special relationship with the Palestinian people, I believe we could direct one billion dollars to the Peace Council from Russian assets frozen under the previous US administration,” Putin said.
Planned meetings with Trump’s envoys in Moscow
Putin said the proposal had already been discussed with US officials and would be taken up again on Thursday during a meeting in Moscow with Trump envoys Steve Witkoff and Jared Kushner. Discussions are expected to cover both the Ukrainian peace process and Trump’s Board of Peace initiative.
The Kremlin said the talks would “continue the dialogue on the Ukrainian settlement” as Trump publicly suggested a deal to end the war may be close.
“I think I can say we’re pretty close,” Trump said. “We have to stop this… I believe they are now at a point where they can come together and make a deal.
Witkoff confirms visit to Russia
– United States envoy Steve Witkoff will travel to Moscow later Thursday to discuss ending the war in Ukraine, he told an audience at the World Economic Forum.
“I think we’ve made a lot of progress,” Witkoff said, adding that the negotiations are on the last issue.
“So if both sides want to work it out, we’ll work it out,” Witkoff told the audience in Davos.
He added that creating a duty-free zone in Ukraine would be a “game changer” for the country’s economy.
Limited funds, extensive rebuilding needs
Despite the headline figures, the scale of Russia’s supply remains modest. Only about $4-5 billion in Russian assets are estimated to be held in the United States, a fraction of the roughly $300 billion in frozen Russian reserves worldwide — most of which are located in Europe.
The contrast is stark when set against the needs of Ukraine. As of February 2025, the cost of reconstruction and wider economic and social recovery was estimated at around US$524 billion over the next decade, a figure that continues to rise as the war drags on.
An effort to avert further US pressure
Taken together, the proposals represent a diplomatic overture to appeal directly to Trump and prevent further economic sanctions using funds not currently controlled by the Kremlin. Russia has sought to avoid further US sanctions on itself and its trading partners, although it shows no sign of fundamentally changing the war it launched nearly four years ago.
Trump, for his part, has alternated between accusing Putin and Ukrainian President Volodymyr Zelensky of blocking peace, while in moments of frustration he has threatened tariffs and sanctions against Russian trading partners. Major gaps remain in Trump’s proposed peace framework, particularly Russia’s insistence that Ukraine cede territory it does not fully control.
The war continues despite peace talks
Meanwhile, the conflict continues to take a heavy toll. Ukraine and Russia have stepped up attacks on energy infrastructure as the invasion approaches its fifth year. Russia stepped up strikes on Ukraine’s power grid this winter, leaving millions without heating and water in freezing conditions.
Putin said he also plans to discuss a potential $1 billion contribution to the Peace Council with Palestinian President Mahmoud Abbas, who he is due to meet in person.
The Gaza Council connects conflicts thousands of kilometers apart
Trump has invited dozens of world leaders to join the Peace Council, a central pillar of his 20-point plan to end the war in Gaza. Participation comes at a high price: Trump has demanded that countries contribute at least $1 billion for permanent membership.
