Biden’s final attempt: EU urged to seize Russian assets for Ukraine negotiations

US President Joe Biden is planning one final attempt before the end of his term to convince European Union authorities to seize the frozen assets of Russia's Central Bank.

According to a report by US media, citing two senior US administration officials, the goal is to strengthen the position of Western countries in any potential negotiations with Russia regarding Ukraine, per Caliber.Az.

Biden’s strategy proposes that the frozen Russian assets in the EU be transferred to a special escrow account. This account would remain blocked unless talks between Russian President Vladimir Putin and US President-elect Donald Trump yield favourable results for the United States. Sources told CNN that Biden’s team and Trump’s advisers have already discussed the idea, with Trump’s team supporting it, seeing it as a way to gain additional leverage in future negotiations with Moscow.

However, EU leadership remains sceptical about this approach. Officials point out the potential for significant reputational damage to the European banking system and express concerns over the violation of international private law principles.

According to sources, Biden’s plan faces strong opposition in the EU, and the likelihood of success before Trump’s inauguration appears low. That said, Biden's team believes the situation could change if Chancellor Friedrich Merz takes office in Germany, as he is considered more likely to support the idea of seizing Russian assets.

Since Russia's invasion of Ukraine, the EU, the US, Canada, and Japan have frozen about $300 billion in Russian assets. Around $5-6 billion of that amount is in the United States, while the majority is held in Europe, including $210 billion on the Euroclear platform in Belgium.

Russian Foreign Ministry spokeswoman Maria Zakharova has previously warned that Moscow will immediately retaliate against any potential confiscation of its assets. She stated that Russia has a broad range of political and economic countermeasures prepared.

By Tamilla Hasanova