Putin Agrees to $1 Billion for Gaza Reconstruction—with a Condition

However, the contribution comes with a strategic condition. Putin proposed that the $1 billion be sourced from Russian state assets currently "frozen" in U.S. banks, which were seized during the previous Biden administration following the invasion of Ukraine.

Speaking at a Russian Security Council meeting on Thursday, January 22, Putin highlighted Russia’s historic ties with the Palestinian people. "Russia’s relationship with the people of Palestine has always been special. We wish to assist in the rebuilding of Gaza," Putin stated. "Our proposal is that this $1 billion contribution be taken from the Russian assets frozen in the U.S. under the previous administration."

The announcement follows President Trump’s invitation to Putin to join the ambitious "Board of Peace" initiative. Regarding the invitation, the Russian President expressed his gratitude but noted that Moscow would consult its strategic allies before making a final decision on formal membership.

Under Trump’s peace plan, post-war Gaza would be managed by a non-political technocratic government overseen by the Board of Peace. Membership in the board requires a $1 billion contribution to the reconstruction fund. Several nations, including Pakistan, Turkey, Kazakhstan, and Hungary, along with various Western states, have already signaled their intent to participate. Analysts suggest that if Trump accepts Putin's proposal to use frozen assets, it could signal a significant shift in international diplomacy and the handling of sanctioned funds.