UK Poised to Hand Ukraine $10.6 Billion in Frozen Russian Assets
The British government is prepared to hand over £8 billion (about $10.6 billion) in frozen Russian assets to bolster Ukraine’s financial needs.
The Gaze informs about it, referring to The Times.
Senior ministers have reportedly concluded that President Vladimir Putin poses an “active threat” to the safety, stability, and prosperity of the United Kingdom. London is therefore seeking to take a leading role in international efforts to increase economic pressure on the Kremlin.
Britain is attempting to broker a broader agreement with the European Union and several partner countries, including Canada, which is considering contributing up to £100 billion toward Ukraine’s military needs.
If coordinated, these combined resources could cover more than two-thirds of Ukraine’s projected financial requirements over the next two years – either to sustain its war effort or to support reconstruction should a peace deal be reached.
The proposal to unlock and repurpose Russian state assets frozen in the UK was discussed on Wednesday during a meeting of NATO foreign ministers in Brussels. However, British officials say that the exact legal mechanism for releasing the £8 billion held in the UK has not yet been finalized.
A government source told The Times that while political will is strong, the framework for transferring the funds to Kyiv still requires complex legal and diplomatic work.
The debate comes amid a wider EU discussion on the use of frozen Russian reserves. The European Commission has suggested providing Ukraine with a €140 billion “reparations loan” backed by Russian assets seized across the bloc. But the initiative has stalled due to resistance from Belgium, which holds the largest share of the frozen funds.
Belgian Prime Minister Bart De Wever has warned of potential long-term economic and geopolitical repercussions, while Foreign Minister Maxime Prévot insists that Brussels must guarantee coverage of any legal costs or potential compensation claims from Russia.
In response to the stalemate, Commission President Ursula von der Leyen is reportedly pushing to shift the decision from unanimous approval to a simple majority vote.
As The Gaze reported earlier, backing Ukraine through to victory is likely to cost Europe dramatically less than conceding to Moscow.
Read more on The Gaze: Using Frozen Russian Assets for Ukraine's Reconstruction: Creating a Reparations Fund to Restore Justice