UK weighs plan to unlock $10.7 bn in frozen Russian funds for Ukraine — The Times
The UK government is considering releasing £8 billion ($10.7 billion) in frozen Russian sovereign assets to support Ukraine, The Times reports, citing senior officials involved in the discussions.
London is pushing for a coordinated international mechanism that could unblock up to £100 billion ($133 billion) together with the EU, Canada and other partners.
Foreign Secretary Yvette Cooper said the proposal is linked both to Ukraine’s short-term financing needs and to broader pressure on Moscow. “We need a co-ordinated plan to draw on those Russian sovereign assets in order to be able not only just to support Ukraine in the short term, but share that overwhelming message to Russia,” she said, stressing that coordinated action is “vital for countries to operate together.”
According to The Times, ministers believe the combined effort could cover more than two-thirds of Ukraine’s financial needs over the next two years — whether for sustaining the war effort or for reconstruction if a peace agreement is reached.
The UK and its partners are balancing legal and political constraints as they explore how to unlock the funds. A British government source told The Times that “the exact mechanism to unlock the £8 billion ($10.7 billion) of Russian assets held in the UK and hand it to Ukraine had not been finalised.” Meanwhile, the European Union is seeking a way to mobilize €90 billion ($105 billion) in Russian assets held mainly in Belgium. Belgian officials oppose a direct transfer to Ukraine, arguing that the country could become legally liable for an amount equivalent to a third of its annual GDP.
On Wednesday, the European Commission presented a proposal to use emergency EU powers to seize the assets, potentially bypassing a Belgian veto, The Times writes. EU officials see a quick solution as crucial, as Ukraine faces a large financing gap next year.
The UK initiative comes as Cooper announced new sanctions against the GRU and several officers involved in the 2018 Salisbury poisoning. “We will not tolerate this brazen and despicable aggression on British soil,” she said, adding that “Putin and his GRU agents are an active threat to Britain’s citizens, our security and our prosperity.”
Prime Minister Keir Starmer described the Salisbury attack as “a reminder of Russia’s reckless aggression”. He said: “The UK will always stand up to Putin’s brutal regime and call out his murderous machine for what it is. Today’s sanctions are the latest step in our unwavering defence of European security, as we continue to squeeze Russia’s finances and strengthen Ukraine’s position at the negotiating table.”
Previous profits earned on frozen Russian assets have already been diverted to support Kyiv. The new plan would use “cash balances” to finance Ukraine through a “reparations loan” in 2026–2027. Without this mechanism, the alternative would be for UK and EU taxpayers to cover a Ukrainian budget shortfall of €137 billion ($160 billion) over the next two years, The Times notes, at a time when borrowing costs and budget deficits across Europe are rising.
Bloomberg reported recently that the United States has been lobbying several EU member states to resist the bloc’s plan to use frozen Russian central bank assets as collateral for a large loan to Ukraine.
