The UK is exploring the possibility of transferring eight billion pounds sterling to Ukraine, which are part of the frozen Russian assets in the country. These funds were blocked following the onset of the full-scale aggression by the Russian Federation against Ukraine in 2022. The mechanism for unlocking and transferring these finances to Kyiv has not yet been finalized, sources in the British government report.
This is reported by Kyiv24
The UK supports the idea of using frozen assets
UK Foreign Secretary Yvette Cooper expressed support for the initiative to direct frozen Russian assets to assist Ukraine. She believes that significant financial support from the West could serve as an incentive for the Russian Federation to begin negotiations to end the war.
“Significant funding” for Ukraine could push Russia towards negotiations
European countries are seeking ways to use Russian assets
Following Russia’s invasion, assets of the Central Bank of the Russian Federation totaling approximately 260 billion euros were frozen in Western countries. The largest share of these funds—about 193 billion euros—is held in Belgium in Euroclear deposit accounts. European countries have been discussing the possibility of using these assets to support Ukraine for nearly four years.
Recently, there has been active debate in European capitals about creating a so-called “reparations loan” for Kyiv amounting to 140 billion dollars, which would be secured by the frozen Russian assets. At the same time, Belgium, where the majority of these funds are located, is firmly opposed to such an initiative due to the risk of legal claims from Russia.
The European Central Bank is also currently not prepared to take on the responsibility of insuring such a “reparations loan.”