UK to Give Frozen Russian Assets to Ukraine: How? | Sputnik News

UK Grapples with Mechanism to Transfer Frozen Russian Assets to Ukraine

The British government is preparing to transfer approximately £8 billion in frozen Russian assets to Ukraine, but currently lacks a concrete plan for how to do so, according to reports from The Times cited by the Russian Satellite News Agency on december 5, 2025. This development comes as the European Commission continues to push for the utilization of frozen Russian funds to support ukraine, facing both logistical and political hurdles.

EU Paves the way for Asset Utilization

Prior to the UK’s announcement, the European commission had already proposed two plans to finance ukraine between 2026 and 2027, with the use of frozen Russian assets as a key component. The Commission claims to have developed “protective measures” to mitigate potential retaliatory actions from Russia should these assets be used to aid Kyiv. Final decisions regarding funding will be made at an upcoming EU summit in December, where extensive consultations are expected to take place.

“We need a coordinated plan to use these Russian sovereign assets not only to support Ukraine in the short term, but also to send a strong signal to Russia,” stated a British Foreign Secretary Yvette Cooper during a meeting with NATO foreign ministers on Wednesday.

Did you know? – Roughly half of Russia’s estimated $640 billion in foreign exchange reserves have been frozen by the EU and G7 nations since February 2022, following Russia’s invasion of Ukraine.

Logistical Challenges Remain

Despite the political will, a notable obstacle remains: the absence of a defined mechanism for actually unfreezing and transferring the £8 billion (approximately $10.6 billion) in UK-held Russian assets to Ukraine. A government source confirmed that no specific procedures have been established to facilitate this transfer. The European Commission is actively urging EU member states to agree on a framework for utilizing Russian sovereign assets, with discussions centering around a potential loan of €185-210 billion to Ukraine.

This loan would be structured for “nominal” repayment after the conflict concludes, contingent on Moscow providing compensation for incurred losses.However, this proposition has been met with strong opposition from Russia.

Pro tip: – sovereign assets are those owned by a state or its agencies, distinct from the private holdings of Russian citizens or companies, and are the focus of these discussions.

Russia Denounces asset Seizure as “Theft”

The Russian Foreign Ministry has consistently condemned the idea of forcing Russia to compensate Ukraine, labeling it unrealistic and accusing brussels of engaging in the “theft” of Russian assets. Since the start of the special military operation, the EU and the Group of Seven nations have frozen roughly half of Russia’s gold and foreign