German Chancellor Friedrich Merz said Thursday that billions of dollars in frozen Russian assets should remain under European control, pushing back against a reported U.S. proposal to place some of the funds under Washington’s supervision as part of efforts to revive peace talks over Ukraine.

“Those are assets that are frozen in Europe, and they should remain frozen in Europe. This is our business, and we are deciding over it,” Merz said in Brussels ahead of a European Union summit.

The Financial Times reported Wednesday that the United States had proposed transferring some of the assets into a vehicle overseen by Washington. The proposal was reportedly presented by U.S. special envoy Steve Witkoff and President Donald Trump’s son-in-law Jared Kushner. European delegates rejected the plan, according to the report. Reuters said it could not immediately independently verify the claims.

European Union countries immobilized approximately €210 billion, or about $236 billion, in Russian central bank assets after Moscow launched its full-scale invasion of Ukraine in February 2022. Roughly €185 billion, equivalent to about $208 billion, is held by Euroclear, a Brussels-based securities depository.

The frozen funds have become a major point of contention as Western governments debate how to use Russia’s financial resources to support Ukraine and potentially influence the course of the war. Some European countries have advocated using the assets to provide financial assistance to Kyiv.

Merz’s remarks underscore Europe’s determination to retain authority over the funds as discussions continue over possible peace negotiations and the future of Russia’s immobilized reserves.