Reeves urges EU to ‘act now’ and seize £175bn of Russian assets to protect Ukraine
Rachel Reeves has urged the EU to take custody of €210bn (£175bn) in frozen Russian assets and use the money to support Ukraine’s defence. She warned that without further funding, Ukraine’s ability to resist Russia could be seriously weakened, putting European security at risk.
Reeves made the appeal in a joint article with former senior politicians from Germany, France and Canada, as Ukraine faces a difficult winter and uncertainty over US support. They said the funds could finance Ukraine’s defence into 2029 and proposed transferring the assets and associated liabilities to the EU, with safeguards against possible Russian retaliation. A previous effort to use the money stalled over concerns about risks to the Belgian bank holding most of it.
In short
- Reeves wants the EU to use frozen Russian assets for Ukraine.
- The €210bn could fund Ukraine’s defence into 2029.
- Her proposal includes safeguards against Russian retaliation.
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The case for
Using the frozen assets could provide Ukraine with sustained support at a moment when its own resources and outside assistance are uncertain. Advocates argue that Russia should bear more of the cost of the damage and defence needs created by its invasion, and that clear safeguards could help manage the legal and financial risks while strengthening European security.
The case against
Taking custody of the assets and using them for Ukraine could expose the EU and the financial institutions involved to legal challenges, retaliation or lasting damage to confidence in Europe as a secure place to hold reserves. Sceptics may argue that these risks require a more cautious approach, and that Ukraine’s defence should be funded through agreed public contributions rather than a precedent-setting transfer of frozen sovereign assets.
Explained simply
Russia launched its full-scale invasion of Ukraine in 2022, and the war has continued with Ukraine relying on financial and military support from other countries. The European Union and its member states have provided aid, while the United States has also been a major source of support.
After the invasion, Western governments froze Russian state assets held in their jurisdictions. Most of the funds in question are held by Euroclear, a financial institution based in Belgium, and remain frozen rather than transferred to Ukraine.
Rachel Reeves is the UK’s chancellor, and the EU is a separate political and economic bloc of 27 countries. Using the frozen assets themselves would raise legal and financial questions, including the risk of Russian retaliation and the exposure of institutions holding the funds.
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