The reconstruction of Ukraine after the war initiated by Russia is estimated to cost around 400 billion dollars. As part of a peace agreement supported by U.S. President Donald Trump, over 300 billion dollars of Russian assets frozen abroad may be seized. Political scientist and Eastern Europe expert Mark Galeotti expressed the opinion that «225 billion pounds (over 300 billion dollars) of Russian state assets could be used for the reconstruction of Ukraine».
This is reported by Business • Media
According to one European diplomat, «Moscow will theatrically spit and scream, but in reality, it will see this as a way to pay reparations with money it will not get back anyway».
Analysts emphasize that the return of occupied territories and the discrediting of Putin’s regime will depend on Ukraine’s ability to create a stable and successful state in the long term. While the fear of new aggression from Russia will remain, Kyiv will adopt a «hedgehog strategy»: making itself so prickly that the Russians will think twice before launching another military attack.
Minimal Chances of Returning Russian Assets and the Search for Additional Funding Sources
The National Bank of Ukraine is confident that the confiscation of Russian assets will not significantly impact the role of the euro in the global economy. Meanwhile, Ukrainian Prime Minister Denys Shmyhal stated that the frozen Russian assets are insufficient for the complete reconstruction of the country, so additional funding sources must be sought.
He suggested that the European Union and other Western partners impose tariffs on imports of goods from Russia, with the collected funds directed towards the reconstruction of Ukraine.
«We need to look for new mechanisms to attract funds, as the frozen Russian assets will not cover all the costs of rebuilding the country», the Prime Minister noted.