Vladimir Putin ready to give frozen assets for rebuilding Ukraine

On the eve of high-stakes talks with US President Donald Trump’s special envoy Steve Witkoff, Russian President Vladimir Putin struck a conciliatory note on Wednesday night, signalling readiness to unlock frozen Russian assets for the reconstruction of war-ravaged Ukraine once a peace agreement is reached between the two former Soviet republics.

Addressing a televised meeting of Russia’s Security Council late on Wednesday, Putin said Moscow was in discussions with the US administration on using part of the seized funds to rebuild territories devastated by the conflict after a formal peace treaty is concluded.

“Incidentally, the remaining funds from our frozen assets in the United States could be directed towards restoring areas damaged by the fighting following a peace settlement between Russia and Ukraine,” Putin said, adding that the proposal was already under consideration with American officials.

In a surprise announcement, the Russian leader also pledged a USD 1 billion contribution from the frozen assets to the Trump-backed “Board of Peace”, an initiative aimed at overseeing the Gaza ceasefire plan. However, Putin stressed that Russia’s formal decision on joining the board would be taken only after consultations with its strategic partners.

“Regarding our participation in the ‘Peace Board’, the Ministry of Foreign Affairs has been instructed to study the documents received, consult with our strategic partners, and only then will we respond to the invitation extended to us,” Putin said in his opening remarks at the security council meeting.

Putin thanked President Trump for the invitation, acknowledging what he described as the current US administration’s role in pursuing a resolution to the Ukraine conflict. “We have always supported and continue to support efforts aimed at strengthening international stability,” he said.

American envoys Steve Witkoff and Jared Kushner are expected to meet Putin on Thursday to explore possible pathways to a settlement of the Ukraine war.

Originally conceived as a compact group of global leaders to supervise the Gaza ceasefire, Trump’s Board of Peace has since expanded into a far more ambitious enterprise. The US president has extended invitations to dozens of nations and suggested the body could eventually mediate conflicts worldwide, assuming a role akin to an informal UN Security Council.

Putin noted that Russia’s invitation to the board was primarily linked to efforts to stabilise West Asia, address the Palestinian question, and ease the acute humanitarian crisis in the Gaza Strip. He underlined that any peace initiative must contribute to a lasting settlement of the Palestinian-Israeli conflict, grounded in United Nations resolutions.

“The most important point is that the entire process should have a positive impact on a long-term settlement,” Putin said. “It is essential that the fundamental needs and aspirations of the Palestinian people are taken into account.”

He highlighted the urgent need for the reconstruction of Gaza, including its social infrastructure, healthcare systems, water supply and food security, before announcing Russia’s financial pledge.

“Even before we take a final decision on our participation in the Peace Board, taking into account Russia’s special relationship with the Palestinian people, we could provide USD 1 billion from Russian assets frozen under the previous US administration,” Putin said.

The Russian president said he would discuss these issues in detail with Palestinian President Mahmoud Abbas during talks scheduled for Thursday. Abbas arrived in Moscow on Wednesday for a two-day visit, as diplomatic manoeuvring intensifies across multiple global flashpoints.

With PTI inputs