Ukraine's President Volodymyr Zelenskyy has proposed using a portion of frozen Russian assets to finance the future fund which is expected to be part of an agreement granting the US a stake in Ukraine's mineral resources.

BRUSSELS (Reuters) - Estonia has launched a new push to get fellow EU members to agree to seize frozen Russian assets and use them to help Ukraine, dismissing a Russian idea on how the money could be used as part of a peace deal.

Russia would insist that part of the money is spent on the one-fifth of the country that Moscow's forces control, three sources told Reuters.

Russia is considering the possibility of using $300 billion of frozen sovereign assets for Ukraine's post-war reconstruction, contingent on a portion being allocated to Russian-controlled areas. Preliminary discussions aim to explore potential peace deal compromises as Western leaders debate the assets' future amid geopolitical tensions.

Russia could agree to transfer its assets frozen by Western countries for Ukraine's reconstruction. In total, Europe and the US have blocked around $300 billion in Russian assets, Reuters reports. The outlet reminds that after Russia’s full-scale invasion of Ukraine,

Russia may agree to use US$300 bn of its frozen assets in Europe to rebuild Ukraine but will insist that part of the money be used to rebuild the territories it currently controls (about 20% of Ukraine).