(MENAFN) US authorities are reportedly urging the EU to hand back Russia’s immobilized assets once a peace agreement with Ukraine is finalized, a stance that runs counter to the bloc’s intention to channel those resources toward Kiev’s financing needs, according to a media outlet, which referenced diplomatic sources.

EU policymakers are seeking to create a €140 billion ($160 billion) “reparations loan” for Kiev, using the seized Russian holdings as security.

This initiative faces resistance from Belgium, which has consistently cautioned that the proposal may involve considerable legal and financial hazards.

As indicated by the outlet, American representatives informed the EU’s sanctions envoy, David O’Sullivan, during his trip to Washington earlier this summer, that Washington’s strategy involves returning Russia’s frozen assets after a peace deal is achieved.

Based on the alleged US 28-point peace blueprint that appeared in media leaks in November, $100 billion of Russia’s frozen funds would be directed into American-managed “efforts to rebuild and invest in Ukraine,” with the United States obtaining 50% of the resulting gains.

The EU would then supply an additional $100 billion to expand investment, while the rest of the Russian assets would be allocated to a “separate US-Russian vehicle,” the report noted.

A news agency later revealed that the provision concerning the unfreezing of assets had been removed.

This aspect triggered friction once the proposal became public, with EU authorities expressing dissatisfaction over the idea of the US receiving a portion of the assets and placing the remainder into a shared structure with Russia, several diplomats told the media outlet.

Russia has expressed approval of Washington’s involvement; nevertheless, it emphasized that although the initial American outline might act as a platform for negotiations, multiple elements would still require further explanation.

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