Putin signals using frozen assets to rebuild Ukraine
American envoys Steve Witkoff and Jared Kushner are expected to meet President Putin to discuss a possible Ukraine peace solution
Before Witkoff talks, Putin offers frozen assets to rebuild Ukraine, pledges Gaza peace fund, as envoys seek breakthrough
Russian President Vladimir Putin has signalled a notable shift in Moscow’s public stance on post-war reconstruction, expressing readiness to allow the use of frozen Russian assets to help rebuild Ukraine—provided a formal peace agreement is reached between the two neighbouring countries.
The remarks came ahead of scheduled talks with U.S. The meeting is expected to explore possible pathways toward a political settlement of the nearly four-year-long conflict that has devastated large parts of Ukraine and reshaped global geopolitics.
Speaking during a late-night televised meeting of Russia’s Security Council on Wednesday, January 21, Mr. Putin said that Moscow was open to discussions with Washington on redirecting frozen Russian funds toward reconstruction efforts once hostilities formally end.
Mr. Putin said.
Since the outbreak of the war in 2022, Western countries have frozen an estimated $300 billion in Russian central bank assets, most of them held in the United States and Europe. Kyiv and several European governments have repeatedly argued that these funds should be seized outright and used to compensate Ukraine for war damage. Moscow has strongly opposed any such move, calling it illegal and warning of severe consequences.
Mr. Putin’s latest comments, however, suggest a more pragmatic tone—one that appears aimed at reviving stalled diplomatic engagement with the United States under President Trump’s second term. While the Kremlin leader did not provide details on the scale or mechanisms of potential asset transfers, his remarks mark one of the clearest acknowledgements yet that frozen Russian funds could play a role in Ukraine’s eventual recovery.
In a second announcement that drew international attention, Mr. Putin said Russia would donate $1 billion from the frozen assets to the Trump-backed “Board of Peace,” an international body promoted by the U.S. President to oversee the fragile Gaza ceasefire plan.
Putin said, linking the donation to Russia’s willingness to support conflict-resolution mechanisms beyond Eastern Europe. The Board of Peace, still in its formative stage, is expected to monitor ceasefire compliance and humanitarian aid flows in Gaza following months of intense fighting.
American envoys Steve Witkoff and Jared Kushner are expected to meet Mr. Putin in Moscow on Thursday to discuss a possible Ukrainian settlement. According to sources familiar with the preparations, the talks will focus on confidence-building measures, phased ceasefire options, and the role of international guarantors in any future agreement.
Mr. Kushner, who played a central diplomatic role during President Trump’s first term in the Middle East, has recently re-emerged as a key informal channel in sensitive negotiations. Mr. Witkoff, meanwhile, has been tasked with spearheading the administration’s Ukraine diplomacy, reflecting Mr. Trump’s push for a swift deal that could end the war and ease global economic pressures.
The Kremlin has framed the upcoming meeting as exploratory rather than decisive. “These are complex issues that cannot be resolved overnight,” Kremlin spokesperson Dmitry Peskov told reporters earlier on Wednesday. “But dialogue itself is an important step.”
In Kyiv, Mr. Putin’s remarks were met with cautious scepticism. Ukrainian officials have long insisted that reconstruction funding should not be conditional on political concessions and that Russia must first fully withdraw from occupied territories. A senior Ukrainian diplomat, speaking on condition of anonymity, said that any proposal involving frozen assets would need “clear legal guarantees and international oversight.”
Western analysts are divided on whether Moscow’s overture represents a genuine breakthrough or a tactical move. Some see it as an attempt to soften Russia’s image and re-enter negotiations from a position of apparent flexibility, while others believe the economic strain of prolonged sanctions is forcing the Kremlin to reconsider previously rigid positions.
For now, expectations remain measured. Yet, with high-level talks imminent and rhetoric on both sides showing subtle shifts, the possibility of renewed momentum toward a negotiated settlement—however distant—no longer appears entirely out of reach.