UK, Canada to Join EU Plan Using Frozen Russian Assets for Ukraine Loan
The United Kingdom and Canada are set to join the European Union’s initiative to channel profits from nearly $300 billion in frozen Russian Central Bank assets held by G7 nations into a new “reparations loan.”
The Gaze reports this, referring to Bloomberg.
European and transatlantic allies are nearing an agreement that would allow Ukraine to receive substantial loans backed by frozen Russian assets, without requiring their direct confiscation, which remains a legally and politically complex issue. The arrangement is described as a “major step” toward securing Ukraine’s long-term financial resilience.
Under the plan, the funds would help Ukraine purchase weapons, including from the United States, following the decision by President Donald Trump’s administration to end free U.S. military aid to Kyiv. The financing would also support broader economic recovery measures inside Ukraine.
As of March, the UK Foreign Office reported that more than £25 billion ($33.3 billion) in Russian assets remain frozen in Britain, while the EU holds around €200 billion, most of which are located in Belgium.
So far, Ukraine has only received money from interest and profits generated by these assets, rather than the principal funds themselves.
However, Belgium has reportedly insisted on legal guarantees to protect against possible Russian claims in the future, a sticking point that continues to slow negotiations.
British Prime Minister Keir Starmer recently reaffirmed London’s willingness to coordinate closely with the EU on the frozen-assets issue during a call with the leaders of France and Germany.
The three agreed to work jointly with other G7 members, including the United States, where a portion of the Russian funds is also held.
Finance ministers from the G7 are expected to discuss the proposal later this week during the International Monetary Fund’s annual meetings in Washington.
The proposed “reparations loan” would allow Ukraine to begin repayments only after Russia ends its war and pays post-war reparations, effectively tying future accountability to today’s financial assistance.
As The Gaze previously reported, on October 1, Ukraine received another tranche of €4 billion from the European Union as part of the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative, which provides for financing from frozen Russian assets.