Ahead of talks with US President Donald Trump’s special envoy Steve Witkoff on Thursday, Russian President Vladimir Putin expressed readiness to part with the frozen Russian assets for rebuilding war-torn Ukraine after a peace deal is struck between the two former Soviet republics.

In his televised remarks at the meeting of the Russian Security Council late on Wednesday night, Putin also announced to donate $1 billion to the Trump-promoted Board of Peace to oversee the Gaza ceasefire plan from the frozen assets.

"Even before we resolve the issue of participation in the Peace Council and its work, given Russia’s special relationship with the Palestinian people, I believe we could direct $1 billion to the Peace Council from Russian assets frozen under the previous US administration,” Putin said at a meeting with Russia’s Security Council.

“Incidentally, the remaining funds from our frozen assets in the US could be used to rebuild territories damaged by the fighting after a peace treaty is concluded between Russia and Ukraine. We are also discussing this possibility with representatives of the US administration,” he said.

American envoys Steve Witkoff and Jared Kushner are expected to meet with Putin on a possible Ukrainian solution on Thursday.

Russia has sought to avoid any escalating US penalties on itself or its trading partners even as it shows little signs of willingness to alter the war Putin launched against his eastern neighbor nearly four years ago.

Trump has varied between faulting Putin and Ukrainian President Volodymyr Zelenskyy as impediments to peace, and has threatened to slap tariffs and sanctions on Russian trading partners in moments where he has blamed the Kremlin. The two sides remain far apart on several aspects of Trump’s proposed peace plan, with Russia insisting on Ukraine giving up lands it doesn’t currently control as part of any deal.

Ukraine and Russia have been trading attacks on energy infrastructure as Russia’s full-scale invasion of its neighbor is about to enter a fifth year, with Kyiv and Moscow remaining at an impasse over a proposed peace plan.

In February 2025, the total cost of reconstruction as well as economic and social support was estimated at around $524 billion over the next ten years.

The cost of reconstruction continues to increase. This winter, Putin has stepped up strikes on Ukraine’s power sector, leaving millions of people without heating and water amid freezing temperatures.

Putin said he would talk about the possible $1 billion donation to the Board of Peace with Palestinian National Authority President Mahmoud Abbas, whom he also plans to meet in person on Thursday.

Trump has invited dozens of world leaders to the board, a key element of his 20-point plan to create a lasting peace in Gaza. Trump has demanded that nations pay at least $1 billion for permanent membership on the board.