U.S. suggests returning immobilized assets to Russia after Ukraine peace deal is made - media

WASHINGTON. Dec 2 (Interfax) - The U.S. authorities have informed EU Sanctions Envoy David O'Sullivan about plans to return immobilized assets to Russia after the Ukraine peace deal is made, Politico said on Tuesday, citing its sources.

"When EU sanctions envoy David O'Sullivan traveled to Washington during the summer, U.S. officials told him in no uncertain terms that their plan was to return the assets to Russia after the signing of any peace plan," Politico said.

The initial draft of the U.S. peace plan envisaged the disbursement of $100 billion from the immobilized assets for the restoration of Ukraine and investments in its economy under the U.S. aegis.

The provision made EU members worry about "the prospect of the U.S. taking part of the assets (even if it was nominally to rebuild Ukraine) and sharing the rest with Russia," the sources said.

As reported, the European Commission is considering the possible use of immobilized Russian assets worth about 170 billion euros, currently stored in the Euroclear financial depository in Brussels. Of this amount, 140 billion euros would be used as "a reparations loan" to Ukraine. Belgium voiced concern about the plan and its legal and financial implications. Belgian Prime Minister Bart De Wever demanded that EU members give additional, legally binding guarantees if the plan were approved.

The Financial Times said on Tuesday, citing its sources, that the European Central Bank had refused to be the financial guarantor of the reparations loan to Ukraine.

Financing of Ukraine is due to be discussed at the EU summit on December 18.