With Trump, Ukraine renews appeal to seize Russia’s frozen billions

KYIV, Ukraine – Ukrainian officials have renewed their push to gain access to hundreds of billions of dollars in frozen Russian assets in hopes of convincing newly arrived President Donald Trump to overcome opposition in Europe to the move.

The idea is that the use of an alternative source of funding to buy Ukraine weapons and pay for reconstruction will appeal to Trump as he seeks to cut foreign aid. The proposal has gained renewed urgency amid increased uncertainty over U.S. military support for the country.

Kyiv has long sought the outright confiscation of nearly $300 billion in Russian central bank assets – held mostly in Europe and frozen after Russia’s 2022 invasion – and Trump’s return, with his focus on ending the conflict, has revived conversation.

The move to confiscate, however, has little chances without broader European support, and officials say countries such as Germany and France are still categorically opposed, arguing it would undermine confidence in their financial systems. But European officials said they don’t rule out the tide shifting if securing new funding for Ukraine runs into difficulties or if the future of the assets could be a factor into any future negotiations to end the conflict with Russia.

The Biden administration sent tens of billion of dollars to Ukraine in military assistance, but future U.S. support is in doubt.

A U.S. defense official, speaking on the condition of anonymity because of the sensitivity of the situation, said for now future military aid is frozen as part of the larger review of U.S. assistance.

Much of this renewed buzz over assets is being generated by Ukrainian President Volodymyr Zelenskyy and other top officials as part of an effort to bring pressure on Moscow even as Kyiv’s forces continue to cede territory along the front line.

Ukrainian officials who deal with the issue say that they do not know where the new administration stands on the issue of confiscation, but some in the previous administration did support it. Some of Ukraine’s more hawkish allies in Europe, including E.U. foreign policy chief Kaja Kallas, also back the move, but the support of Trump himself is seen as key.

Trump has the “power to change the stance of more skeptical countries” more than “any other leader in the world – they know he’s not joking, that it’s not just hollow words,” said Iryna Mudra, Ukraine’s deputy justice minister, who is part of Kyiv’s effort to get the assets.

“That’s exactly why we need his help convincing our partners that transferring Russian assets is a necessary tool to finish this war,” she said, adding that “we firmly believe that it’s President Trump who can be a changemaker.”

Kyiv officials said they were encouraged by comments last week by Keith Kellogg, Trump’s newly appointed special envoy to Russia and Ukraine, in which he told Fox News that the proposal – as laid out in a Washington Post opinion piece co-authored by retired general, Jack Keane – was “one piece of the puzzle that needs to be discussed.”

Trump’s hard-nosed approach to international politics has also given some Ukrainian officials hope for a breakthrough: “For someone who is trying to get all of Greenland, this is not a big deal,” said a Ukrainian official speaking on condition of anonymity because of the sensitivity of the issue.

Jacob Kirkegaard, a senior fellow at the Peterson Institute for International Economics, said Ukrainian officials were trying to appeal to Trump, whom they see as a “transactional guy,” by suggesting the money be used to buy U.S. weapons.

“That’s a very clear quid pro-quo,” he said. “And they would love for Trump to adopt that argument and basically say to the Europeans, ‘Look if you want me to continue to supply Ukraine with weapons, well let’s buy them with Russian assets.’

“What’s really behind this is that people are seeing a political opportunity with Trump.”

Earlier this month, in an interview with the American conservative podcaster Lex Fridman, Zelenskyy said he “addressed Trump” about confiscating the money, which Ukraine could use in part to buy weapons from the United States. It was not clear from the interview if Zelenskyy said this to Trump directly.

“We don’t need gifts from the United States,” Zelenskyy said. “It will be very good for your industry, for the United States. We will put money there. Russian money, not Ukrainian, not European.”

Most of the money is in the form of bonds, 80 percent of which have reached maturity, of which some $200 billion is held by Euroclear, a Belgian-based financial services company, Ukrainian officials said.

Belgium, Germany and France remain among the strongest opponents of the idea, European officials say. They worry that confiscating the assets could set a precedent of seizing the funds of governments they oppose that would invite legal challenges or deter sovereign wealth funds and central banks from investing.

“I don’t see any signals pointing to an impending breakthrough,” an E.U. diplomat said, speaking on condition of anonymity to share internal deliberations.

Moscow has described plans to use its assets as “stealing our money” and pledged legal consequences.

Instead of touching the assets themselves, Western countries have already started using proceeds from the frozen assets to buy weapons for Ukraine and back a $50 billion loan from the Group of Seven nations to Kyiv. European officials say that loan and other funding mechanisms were secured in anticipation of Trump’s return and should put Kyiv on a solid financial footing for now.

“The discussion about funding for Ukraine is going to heat up with Trump in the White House, and the potential financing demands that will come the E.U.’s way,” the diplomat said. “Will that sway these member states? It could be a factor.”

He said some countries also argued against tapping the assets now in case “you might need them as a bargaining chip in the final negotiations” on the war. Some diplomats expect the Trump administration to use the threat of confiscation as a pressure tactic in any talks.

What the money could be used for is still under question. Although Zelenskyy has advocated for using the funds to purchase weapons, other Ukrainian officials say that the bulk, if not all, could go to reparations and rebuilding Ukraine after the war ends. Estimates for the cost of reconstruction range from a $500 billion to $1 trillion.

But even if the money would be spent rebuilding the country, Zelenskyy and others are pushing for the assets to be seized as soon as possible, both to send a signal to the Kremlin and block any possibility that they could be returned to Russia later.

Andriy Pyshnyy, head of Ukraine’s National Bank, sees the discussions around confiscation moving in the direction of other debates with Western partners during the war, such as those surrounding the F-16 fighter jets: first categorical refusal, and then with time, gradual agreement.

The Russian invasion, the largest conflict in Europe since World War II, requires a response of similar scale, he said. “If we are talking about an unprecedented war, then we are talking about unprecedented volumes (of money).”

“Someone must pay,” Pyshnyy added. “The one who started this terrible war, the one who continues and seeks this pain, must pay. It is Russia.”