Britain Ready to Transfer £8 Billion of Frozen Russian Assets to Ukraine

The UK government plans to use £8 billion of Russian assets to support Ukraine and is urging the EU and partners to unlock up to £100 billion. The European Commission is proposing a way to bypass Belgium’s veto.

According to Censor.NET, The Times reports on this.

“Keir Starmer’s Cabinet is convinced that Putin poses an active threat to the citizens, security, and prosperity of the United Kingdom. As part of an international initiative to increase pressure on the Kremlin, the UK wants to reach an agreement with the European Union and other countries, including Canada, which could unlock up to £100 billion to support Ukraine,” the article says.

Funds for Ukraine

These funds could cover more than two-thirds of Ukraine’s financial needs for the next two years—both to continue its defense and for reconstruction in the event of a peace agreement.

The matter is urgent: next year, Ukraine faces a massive budget deficit and is in dire need of funds to sustain its defense.

The use of frozen Russian assets, The Times reminds, was discussed at a NATO foreign ministers’ meeting in Brussels. Alongside the UK’s £8 billion, the EU is attempting to use €90 billion of Russian assets, mostly held in Belgium, including at Euroclear.

Frozen Russian Assets

After Russia’s full-scale invasion in 2022, Western countries (notably the G7 nations and the European Union) prohibited transactions with the Central Bank of Russia’s (CBR) reserves and financial assets — effectively “freezing” these assets.

By “assets,” we mean: foreign currency reserves, securities, bonds, cash, and, in some cases, assets of individuals or companies subject to sanctions (real estate, accounts, property, etc.).

How much is frozen:

• Estimates suggest the total volume of frozen Russian assets is roughly $300–350 billion.

• Most of it is in EU countries, particularly through accounts in the Euroclear depository (Belgium), where CBR reserves are held.

• For example, about €210 billion of assets are blocked in EU countries.

• Some countries have additionally frozen assets of individuals and companies: for example, in Switzerland — assets worth several billion francs, in the UK — assets worth tens of billions of dollars.

To date, the frozen assets remain blocked — Russia cannot access them.

Western countries partially earn income (interest, coupons) from these assets, and some of these funds are already being used to support Ukraine.