Russia’s Putin Open to Redirecting Frozen Funds for Ukraine Rebuilding

Russian President Vladimir Putin has signalled readiness to allow the use of frozen Russian assets for rebuilding war-torn Ukraine, provided a peace agreement is reached. Putin made the remarks ahead of talks with Donald Trump’s special envoy Steve Witkoff, scheduled for Thursday, January 22, 2026.

Speaking during a televised meeting of Russia’s Security Council late Wednesday night, Putin said Moscow was open to discussions with the US administration on redirecting frozen funds. He stated that the assets could support reconstruction efforts in territories damaged by fighting after a peace treaty between Russia and Ukraine. The remarks marked one of the clearest public signals from the Kremlin on the potential use of frozen assets since the conflict began.

Putin also announced that Russia would donate $1 billion from frozen assets to Trump’s proposed “Board of Peace.” According to the Kremlin, the board aims to oversee the fragile ceasefire plan in Gaza. Putin confirmed that Russia had received an invitation to join the initiative and expressed willingness to participate in related international mechanisms.

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Putin backs Trump’s ‘Board of Peace’ and outlines potential use of seized funds

“Incidentally, the remaining funds from our frozen assets in the United States could be used to rebuild territories damaged by the fighting,” Putin said. He added that Russian officials were already discussing the idea with representatives of the US administration.

The statement comes amid renewed diplomatic activity focused on ending the nearly four-year-long conflict. US officials have said Witkoff, along with senior adviser Jared Kushner, is expected to hold talks with Putin on possible frameworks for a Ukraine settlement. The meetings are seen as part of Trump’s broader effort to position Washington as a central broker in global peace initiatives.

Western governments froze hundreds of billions of dollars in Russian assets following Moscow’s invasion of Ukraine in 2022. The question of how those funds could be used has remained a contentious legal and political issue. Putin’s comments may add momentum to discussions on post-war reconstruction financing, though officials cautioned that significant hurdles remain before any agreement can be reached.

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