The administration of US President Donald Trump has expressed a willingness to recognize Russia’s control over Crimea and several other occupied territories in Ukraine as part of a proposed peace plan to end the war. Reports indicate that special representative Steve Witkoff and Jared Kushner, the US President’s son-in-law, have traveled to Moscow to negotiate with Russian dictator Putin. Analysts note that the likelihood of this scenario being realized is high, despite concerns from Ukraine’s European partners.
This is reported by Business • Media
Economic Consequences for the European Union
Experts warn that the implementation of such a US peace plan, which would solidify the separation of occupied territories from Ukraine, will create prolonged economic uncertainty for Europe. This could exert pressure on the EU economy for years to come, hindering the investment climate and complicating the restoration of trust among businesses and private investors.
The Fate of Frozen Russian Assets and Financial Burden
The question of how to utilize frozen Russian reserves, amounting to approximately $300 billion, remains open. European governments insist that these funds should be directed towards the reconstruction of Ukraine; however, Russia is likely to disagree. Currently, Ukraine’s reconstruction needs are estimated at nearly $600 billion. If Russia does not provide at least half of this amount from its reserves, the primary financial burden will fall on Ukraine’s allied countries.
“However, without a final resolution regarding the status of the territories, Ukraine cannot expect a significant influx of private capital necessary for economic recovery.”
At the same time, Belgian Prime Minister Bart De Wever warned that the EU’s initiative to use frozen Russian assets to finance Ukraine’s reconstruction could jeopardize the very possibility of reaching a peace agreement. Thus, the debates surrounding the future of the occupied territories and frozen assets remain crucial for the economic development of both Ukraine and the European Union.