Trump may use USD 300 billion in frozen russian assets as bargaining chip in talks with putin — Reuters

U.S. President-elect Donald Trump may use USD 300 billion in frozen assets of aggressor russia as a bargaining chip in talks with russian dictator vladimir putin.

Reuters has reported this.

During his election campaign, Trump promised to quickly end the war in Ukraine. One reason he wants to do this is because he does not want the United States to pay for the defense of that country.

If Europe promises to find the money — perhaps by using USD 300 billion in russian foreign exchange reserves that the West froze at the start of the war — the future U.S. president will be able to make a more favorable deal with putin.

It is not only Ukraine that is nervous that Trump may agree to a ceasefire agreement that is favorable to the russian president. The European Union, Britain, and other European countries are also concerned. A deal that leaves Ukraine vulnerable would be bad for their security.

Europe therefore has a strong incentive to persuade Trump to wait for a decent deal. Showing that they will find the money to defend Ukraine if the war drags on could encourage him to do just that.

Trump has argued that some European countries are “delinquent” for not paying enough for their defense. He may also like the fact that most of any increased spending will go to American manufacturers, as Europe is in no hurry to build up its own defense industry.

One way to put pressure on russia could be for Trump to tell putin that the West is ready to provide enough additional financial and military support to keep Ukraine on the front lines. He would add that russia would eventually run out of troops and money, so it was in its interest to negotiate a decent deal now.

For this plan to work, Europe would need to commit a large sum of money. Something like USD 300 billion, enough to support Ukraine for three years.

Such a sum would not only give Trump the impression that Europe was finally pulling its weight in its own backyard. It could convince putin that Ukraine could withstand a war of attrition.

The agency notes that a three-year commitment would also give Western arms manufacturers an incentive to equip them and produce more weapons, thus achieving economies of scale.

In theory, European countries could simply give Ukraine USD 300 billion. Over three years, that’s equivalent to just 0.4 percent of the combined economic output of the EU and the UK — or about twice what Europe is currently providing.

However, Reuters notes that in times of limited budgets, when there are many other priorities, including strengthening their own defense, it will be difficult for European countries to simply write a check to Ukraine.

As the Ukrainian News agency earlier reported, on November 23, President Volodymyr Zelenskyy said that Ukraine has every chance of ending the war in January 2025.

Recall that earlier in November, the American publication The New York Times wrote, citing unnamed Ukrainian officials, that Kyiv's priorities in the peace talks had changed.

We also reported that The Economist informed that, according to some officials in Kyiv, Trump's inauguration day — January 20, 2025 — could be the day of the ceasefire.