Russia seeks sanction relief to unlock £5bn in US assets
Russia desires the US to alleviate the sanctions levied against it and to unfreeze its state assets, as reported by The Moscow Times on Wednesday, citing a diplomatic source familiar with the proceedings of Tuesday's meeting between US and Russian delegations in Riyadh.
The Moscow Times, published in Amsterdam, noted that the Kremlin seeks to regain access to approximately £5 billion frozen in the US. This represents a portion of the Central Bank's reserves invested in dollar assets before the war's onset. The publication recalled that the West had imposed sanctions involving around £245 billion of the Central Bank's foreign reserves, with roughly two-thirds of this sum blocked in Europe.
The Moscow Times' sources revealed that the Russian delegation demanded the restoration of diplomatic missions and recovering diplomatic property in the US in Riyadh. The Kremlin is aiming to regain two properties: New York and Maryland. During Barack Obama's administration in 2016, Russians were barred from accessing these properties due to allegations of intelligence activities.
A source told the publication that Putin does not consider this issue merely symbolic. He perceives it as part of reconstructing Russia's standing in relations with the US.
Putin reportedly instructed the delegation that went to Saudi Arabia to maintain a "maximally friendly and, in a certain sense, even flattering tone towards their American counterparts and President Donald Trump personally" during the meeting, as this would aid in securing the most favourable outcomes.
The President of Russia demands Ukraine's neutral status, a change in the government in Kyiv, a reduction of the Ukrainian army, and the recognition of the annexation of Crimea, along with four occupied Ukrainian regions.
What was agreed in Riyadh
It should be recalled that on Tuesday, the first high-level meeting between US and Russian delegations since the beginning of the war in Ukraine took place in Riyadh, the capital of Saudi Arabia. The American delegation included Secretary of State Marco Rubio, National Security Advisor to the President Michael Waltz, and Special Envoy for the Middle East Steve Witkoff, who is also involved in contacts with Russia. Foreign Minister Sergey Lavrov and Putin's advisor on international policy, Yury Ushakov, represented Russia.
Before the discussions, both sides emphasised that they did not anticipate specific agreements in Riyadh. US State Department spokeswoman Tammy Bruce then remarked that the discussion would be "essentially a continuation of Trump's phone conversation with Putin (which occurred last week), aiming to explore potential ways forward and possibilities."
After the talks, the US Secretary of State remarked that the talks were a "first but important step in a challenging, long journey." Rubio also expressed confidence that Russia is prepared to initiate serious discussions about ending the war in Ukraine.
The Secretary of State informed that the US and Russia agreed on four things: establishing a consultation mechanism to address disputed issues in bilateral relations and normalise embassy operations, appointing negotiation teams for discussions on ending the war in Ukraine, initiating high-level talks to "begin discussions, rethink, and explore both geopolitical and economic cooperation that could arise from ending the conflict in Ukraine," and to continue engagement by both sides.
Rubio stated that any potential peace must be acceptable to all parties, including Europe. The head of US diplomacy also rejected suggestions that Europe was sidelined in the negotiations and emphasised that their outcome must be acceptable to Ukraine, Russia, and the European Union.
On the Russian side, Lavrov assessed that the talks "were not unsuccessful" and that both sides expressed readiness "to resume full collaboration" and "to remove barriers to economic cooperation." He communicated, however, that Russia will not agree to any NATO military presence in Ukraine.
Lavrov also reiterated that Ukraine's NATO membership is unacceptable for Russia because, as he stated, it poses a "direct threat to Russia's interests and its sovereignty." After the meeting, Ushakov and Waltz mentioned that a meeting between Putin and Trump is unlikely to occur as soon as next week. Trump mentioned on 12 February that he expects a meeting with Putin, probably in Saudi Arabia, but did not specify when it would take place.
Talks without Ukraine and the Union
Neither Ukraine nor the EU received invitations to Tuesday's talks, which caused outrage in Kyiv and most European capitals. Ukrainian President Volodymyr Zelensky stated that he would not recognise the outcome of the talks in Riyadh, as any negotiations concerning Ukraine are futile without Ukraine. Following the talks, he added that Kyiv will never accept Russian ultimatums.
