UK won’t tap frozen Russian funds to support Ukraine - FT
British Prime Minister Keir Starmer (Photo: Getty Images)
The British government has ruled out its own plan to use £8 billion in frozen Russian assets held in UK banks to support Ukraine, according to the Financial Times.
The decision came after a similar EU proposal failed on the morning of Friday, December 19. Instead, EU leaders agreed to provide Ukraine with a €90 billion loan, secured against the bloc’s overall budget.
On Friday, British officials said London would not unilaterally use frozen Russian assets to aid Ukraine, as any such move was intended to be carried out only in close coordination with Australia, Canada, and the EU.
“We won’t move without international partners. The UK would continue to work closely with the G7 and EU on Ukraine financing,” a government spokesperson said.
At the same time, British Finance Minister Rachel Reeves added that the country will cooperate with partners on an urgent basis to ensure Kyiv receives the necessary funding. She emphasized that the UK’s support for Ukraine remains unwavering.
On Friday, UK officials also announced that the government will repurpose $2 billion in guarantees to the World Bank, extending existing commitments through 2026 to meet Ukraine’s urgent financial needs.
Background: EU summit approves €90 billion for Ukraine, avoids seizing Russian assets
On December 18–19, EU leaders met in Brussels to decide on financial support for Ukraine for 2026–2027, including discussions on confiscating frozen Russian assets.
However, the European Council ultimately refrained from seizing Russian assets. Factors influencing the decision included Russian threats, pressure from the US, concerns from Belgium (where most of the assets are held), and the usual opponents of aid to Ukraine, such as Hungary and Slovakia. Instead, EU leaders allocated €90 billion to Ukraine for 2026 and 2027 without touching Moscow’s assets.
As explained by Finance Minister Serhiy Marchenko, the funds are non-repayable and interest-free. Repayment can occur only after Russia compensates Ukraine for the damages caused by the war.
