Moscow is awaiting a response to a proposal from President Vladimir Putin to contribute $1 billion from frozen Russian assets held in the United States to fund the newly established “Board of Peace” initiative led by former U.S. President Donald Trump. The offer, initially outlined on , remains unanswered as of , according to Kremlin spokesperson Dmitry Peskov.
The “Board of Peace” was announced by Trump with the stated aim of administering Gaza following the conclusion of the conflict between Israel and Hamas. The mandate of the board was subsequently broadened to encompass conflict resolution efforts in other regions, with Trump reportedly inviting dozens of world leaders, including Putin, to participate. Peskov indicated that the Kremlin is “studying all the details of this proposal,” but has yet to receive a formal reply regarding the financial contribution.
More than $5 billion in Russian central bank assets remain frozen in the United States, providing a substantial pool of funds from which the $1 billion contribution could be drawn. Putin has also suggested that additional frozen assets could be utilized for the reconstruction of territories affected by hostilities, specifically referencing a future peace treaty between Russia and Ukraine. However, he stipulated that this would require the unfrozen of the assets first.
The offer comes amidst ongoing, and reportedly “difficult,” peace talks between Russia and Ukraine, facilitated by the United States. While both sides described the latest round of negotiations, held in Geneva, as “difficult,” some progress was reportedly made on military issues, particularly regarding potential American involvement in monitoring any future ceasefire. The future of territory in eastern Ukraine remains a key obstacle to a resolution, with Putin’s demands fueling skepticism about Russia’s commitment to a negotiated settlement.
The Russian delegation at the recent talks was led by Kremlin aide Vladimir Medinsky, who also led Russia in previous peace negotiations with Ukraine in Istanbul in . Those earlier talks failed to yield a deal, prompting Kyiv to continue its military defense with the support of Western allies. Ukrainian President Volodymyr Zelenskyy has publicly stated that Russia is attempting to prolong the negotiations, a claim Moscow disputes.
The timing of Putin’s offer is significant, occurring as the fourth anniversary of Russia’s full-scale invasion of Ukraine approaches. The proposal can be viewed within the context of Russia’s broader diplomatic efforts to present itself as a potential mediator in global conflicts, while simultaneously pursuing its strategic objectives in Ukraine. The offer to contribute to the “Board of Peace” could also be interpreted as an attempt to strengthen ties with the Trump administration, should the former president return to office.
The U.S. State Department has not yet issued a public statement responding to Putin’s proposal. The potential implications of accepting funds from frozen Russian assets are complex, raising questions about the legitimacy of the source and the potential for political leverage. Any decision to accept the contribution would likely be subject to intense scrutiny from both domestic and international stakeholders.
The offer also highlights the ongoing debate surrounding the use of frozen Russian assets. While some advocate for utilizing these funds to support Ukraine’s reconstruction, others caution against the legal and political ramifications of such a move. The international legal framework governing the seizure and use of sovereign assets remains unclear, and any attempt to confiscate or repurpose these funds could face legal challenges.
The Ministry of Foreign Affairs in Moscow, alongside its allies and partners, is continuing to work on the details surrounding the “Board of Peace” itself, according to Peskov. The Kremlin’s willingness to engage with the initiative, despite ongoing tensions with the West, suggests a desire to maintain open channels of communication and explore potential avenues for de-escalation. However, the lack of a response from Washington to the financial offer underscores the significant obstacles that remain in the path of a comprehensive peace settlement.
The situation remains fluid, and the outcome of the negotiations remains uncertain. The offer of financial support for the “Board of Peace” represents a notable development, but its ultimate impact will depend on the willingness of all parties to engage in good-faith negotiations and address the underlying causes of the conflict.
