Sanctions — 2026-10-18

US Proposes Unfreezing Russian Assets Held in EU as Part of Ukraine Peace Deal, European Allies Reject Move

BLUFFormal release of immobilized Russian sovereign assets under a US-backed peace deal is very unlikely by year-end 2026, as unanimous EU consent remains blocked by entrenched German and broader European opposition.

The Financial Times reported on Wednesday, citing four people familiar with the matter, that US envoys Steve Witkoff and Jared Kushner proposed unfreezing some Russian assets held in Europe, including by moving them into a Washington-overseen special-purpose vehicle, at Miami talks with Ukrainian, French, German, British, EU and NATO officials 123. Sources give the meeting date as October 9 (Meduza) or October 10 (Ukrainska Pravda) 23. A US official told the FT the assets were discussed within a comprehensive peace deal and the mechanisms remain undecided 2. European delegates rejected the plan, and one source told the FT it was "just simply not going to happen" 12. German Chancellor Friedrich Merz said on Thursday in Brussels that the assets "should remain frozen in Europe" 4. Kremlin spokesman Dmitry Peskov said Moscow had no information on the proposal 4. Reuters said it could not immediately verify the report 4.

Analysis
The EU or any G7 government is very unlikely to formally announce a release or unfreezing of immobilized Russian sovereign assets under a US-backed peace arrangement by December 31, 2026. Confidence is low because the account traces to a single Financial Times stream relayed by three outlets, with no named official and no document confirming the proposal. Release requires unanimity among all 27 EU members, and Berlin, Warsaw and Euroclear stakeholders have already signaled opposition. The leak may instead be a US signal meant to pressure Europe into a financing commitment. Washington could still press the idea as an incentive for Moscow, which would strain transatlantic sanctions coordination and Ukraine reconstruction funding.
5 sources
  1. US proposes unfreezing Russian assets for Ukraine peace FT - Pravda NATO
  2. US proposes frozen Russian funds are transferred to Trump-controlled entity, FT reports - Ukrainska Pravda
  3. FT: U.S. proposed unfreezing some Russian assets and placing them under Washington's control; Europe rejected the plan - Meduza
  4. US floats unfreezing some Russian assets to restart Ukraine peace talks, FT reports - Reuters via Investing.com
  5. Merz to Trump: Hands off EU-frozen Russian assets - EU Perspectives

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