The financial cost of war is immense, and securing funding for military aid is a challenge for any government.
Since Russia’s full-scale invasion of Ukraine, Western nations have sought ways to support Ukraine’s defense while also penalizing Russia economically.
One approach has been freezing Russian assets held in Western banks, with discussions ongoing about how to use these funds.
The Trump administration is considering the possibility of using money from frozen Russian assets to purchase American weapons for Ukraine.
$300 billion are frozen
Keith Kellogg, Trump’s special envoy for peace negotiations between Ukraine and Russia, confirmed that this idea is under discussion.
Ukrainian President Volodymyr Zelensky proposed the plan during a January 6 interview.
He suggested that Kyiv could buy U.S. weapons using funds obtained from Russia’s frozen assets, according to Digi24.
He described the measure as a security guarantee but did not disclose Trump’s reaction at the time.
Kellogg stated that using these assets to supply arms to Ukraine remains an option. He acknowledged that it is part of a broader strategy under consideration but not a complete solution on its own.
Currently, an estimated $300 billion in Russian assets are frozen in Western banks.
While these funds cannot be directly accessed, governments have explored the idea of using interest earned on them. Annual interest from these holdings is estimated at around $3.2 billion.
In December 2024, the United States released $20 billion to Ukraine as part of a $50 billion loan promised by the G7.
The repayment of this loan is expected to come from interest generated by frozen Russian assets.
A statement from the U.S. Treasury confirmed that the funds had been transferred to an intermediary World Bank account, from which they would be distributed to Ukraine.
G7 leaders reached an agreement in October to use interest from Russian sovereign assets frozen under Western sanctions as collateral for the loan.
In addition to U.S. contributions, the European Union has pledged €160 million to help Ukraine prepare for winter and defend its energy infrastructure.
Around €100 million of this will come from interest generated by frozen Russian assets in the EU.
