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The British government is considering financing a new wave of loans to Ukraine using billions of pounds of Russian state assets frozen in the UK, Politico reports.
Finance Minister Rachel Reeves presented the plan at a ministerial meeting in Copenhagen. She emphasized that the loans would comply with international law and would not involve the permanent confiscation of Russian state assets.
While most of Russia’s frozen reserves — €185 billion — are held in the EU at the Belgian depository Euroclear, about £25 billion is stored in the UK. These funds could back a British “reparations loan” program, which the Treasury said would “work in unison” with the EU initiative. The proposals under review could “unlock funding for the full value of assets held in the UK.”
Under the EU scheme, Brussels would provide Ukraine with loans of up to €172 billion, backed by frozen Russian assets. In return, the EU would issue interest-free bonds, aiming to avoid charges of outright confiscation. However, Euroclear has cautioned against measures that could expose it to legal or financial risks.
Reeves stressed that London would “only consider options that are in line with international law and are economically and fiscally responsible.”
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