International

UK, France and Germany consider unlocking full Russian assets to fund Ukraine’s future

Saturday, 11 October 2025 4:02AM UTC

The UK, France, and Germany have united to explore using frozen Russian sovereign assets to bolster Ukraine, signalling a significant escalation in Western backing amid ongoing tensions with Russia and legal debates over the assets' utilisation.

The United Kingdom, alongside France and Germany, has signalled its readiness to utilise the full value of frozen Russian sovereign assets to bolster Ukraine's war effort, marking a significant escalation in Western support. Prime Minister Sir Keir Starmer announced a joint commitment with French President Emmanuel Macron and German Chancellor Friedrich Merz to press ahead with this measure, aimed at increasing pressure on Russian President Vladimir Putin and propelling him back to negotiation talks. The leaders emphasised that this action would be coordinated closely with the United States, reflecting a unified Western stance.

Since Russia's full-scale invasion of Ukraine in 2022, UK sanctions have immobilised over £25 billion of Russian assets. Previously, only the profits and interest accrued on these frozen funds had been redirected to support Ukraine. This shift to potentially unlocking the entire value represents a critical development in financing Ukraine’s military and reconstruction needs. Starmer assured Ukrainian President Volodymyr Zelenskyy of the three nations’ unity in advancing this approach, while indicating further sanctions would soon follow to maintain pressure on Moscow.

This announcement aligns with discussions held by European leaders in Copenhagen, who contemplated using nearly €140 billion (approximately £121 billion) of frozen Russian assets to extend a loan to Ukraine. The European Union holds frozen Russian assets estimated at almost €211 billion (£181 billion), which could form a substantial financial backing for Ukraine. The EU is also considering framing the loan’s guarantees outside member states’ deficit and debt calculations to ease financial concerns among countries, a move intended to facilitate funding without adversely impacting national budgets.

Ukrainian President Zelenskyy has actively engaged European officials on this front, recently discussing the 'fair use' of frozen Russian assets with European Central Bank President Christine Lagarde. Zelenskyy stressed the importance of deploying these funds not only for defence but also for the country’s reconstruction efforts. While there are viable legal and economic solutions on how to utilise the assets, Zelenskyy acknowledged the need for stronger political will within Europe to make this happen.

Lagarde has cautioned that any use of these funds must strictly comply with international law to avoid undermining the credibility of the euro and destabilising financial markets. Given that outright confiscation may be considered illegal, her recommendation involves creative financial mechanisms such as investing the frozen assets in zero-coupon bonds guaranteed by EU governments, with proceeds used to provide a reparations loan to Ukraine. This approach aims to maintain legal integrity while addressing Ukraine’s urgent financial requirements.

The UK has already contributed substantial financial aid to Ukraine, having provided a £2.26 billion war loan in multiple instalments this year, supporting the purchase of air defences, artillery, and maintenance equipment. British officials have reiterated their commitment to Ukraine, pledging a total of £4.5 billion in aid for 2025. This assistance is critical in the wake of ongoing Russian attacks, including recent deadly missile strikes, and extends to the provision of radar systems, anti-tank mines, and drones.

However, Moscow has condemned these moves as illegitimate. The Russian embassy in London labelled Britain's plan to use frozen Russian assets for loans to Ukraine as a "fraudulent scheme," accusing the UK of unlawfully expropriating income from Russian state assets. Similar denunciations have come from Russia’s Foreign Ministry towards Western nations’ financial support for Ukraine, highlighting the continued diplomatic tensions surrounding these asset freezes and their utilisation.

This evolving situation underscores a complex intersection of legal, financial, and geopolitical considerations as Western nations seek new ways to support Ukraine amid the protracted conflict with Russia. The coordinated move by the UK, France, and Germany to unlock the full value of frozen Russian assets represents a significant step in international efforts to sustain Ukraine’s defence and reconstruction, while maintaining pressure on Moscow to seek a negotiated resolution.

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Source: Noah Wire Services

More on this

https://www.bbc.com/news/articles/c62np269qv9o?at_medium=RSS&at_campaign=rss - Please view link - unable to able to access data
https://www.reuters.com/world/europe/britain-france-germany-move-closer-giving-russian-assets-ukraine-2025-10-10/ - On October 10, 2025, the leaders of Britain, France, and Germany announced their agreement to move forward with utilizing the value of immobilized Russian sovereign assets to support Ukraine’s military efforts. This coordinated initiative seeks to pressure Russia into negotiations amid ongoing conflict. The decision, made in consultation with the United States, signals a unified stance among key Western nations in leveraging frozen Russian resources for Ukraine’s defense. Additionally, the joint statement, issued by British Prime Minister Keir Starmer, French President Emmanuel Macron, and German Chancellor Friedrich Merz, expressed support for a ceasefire agreement in Gaza and a commitment to promptly resume humanitarian aid once the ceasefire is in effect.
https://www.reuters.com/business/finance/zelenskiy-says-he-discussed-frozen-russian-assets-with-ecb-president-lagarde-2025-10-10/ - On October 10, 2025, Ukrainian President Volodymyr Zelenskiy announced that he had discussed the 'fair use' of frozen Russian assets with European Central Bank President Christine Lagarde. This conversation followed a significant overnight Russian airstrike across Ukraine. Zelenskiy emphasized the importance of using these assets to protect Ukraine against ongoing aggression and to aid in reconstruction efforts. He pointed out that there are viable solutions for how these frozen assets could be utilized and called for increased political will in Europe to implement them. Zelenskiy later reiterated his appreciation for international support and expressed optimism about nearing a decision on deploying the assets for Ukraine’s defense and recovery.
https://www.reuters.com/business/eu-will-seek-exclude-ukraine-loan-guarantees-deficit-calculations-2025-10-10/ - The European Union plans to exclude financial guarantees for a proposed Ukraine reparations loan from member states' deficit and debt calculations. The plan involves using €140 billion ($162 billion) in frozen Russian assets to fund the loan, to be repaid by Ukraine once it receives reparations from Russia following the war. European Economy Commissioner Valdis Dombrovskis stated that these guarantees are unlikely to be activated under the proposed structure, but final confirmation awaits Eurostat’s review. Italy and other members raised concerns about the guarantees during finance ministers' discussions. The EU is also exploring ways to prevent individual member states from unilaterally blocking sanctions renewals against Russia, which currently require unanimous consent. The IMF estimates Ukraine will face a $60 billion funding gap by 2026–2027, excluding military aid, prompting further support discussions at forthcoming G7 and IMF-World Bank meetings. Dombrovskis indicated the EU is not asking for G7 backing of the loan, but encourages similar asset-freezing frameworks elsewhere. Most of the $300–350 billion in frozen Russian central bank assets are held in Europe, with Belgium urging EU-wide risk-sharing on the Ukraine loan.
https://www.reuters.com/world/europe/eu-must-follow-law-using-frozen-russian-assets-help-ukraine-lagarde-says-2025-10-06/ - European Central Bank (ECB) President Christine Lagarde emphasized that any European Union (EU) initiative to utilize frozen Russian state assets to assist Ukraine must comply with international law. Following Russia's 2022 invasion of Ukraine, approximately €210 billion in Russian sovereign funds were immobilized in the West. As outright confiscation is considered illegal, EU leaders are exploring legally sound alternatives. One proposed method involves investing the funds in zero-coupon bonds issued by the European Commission, with guarantees from EU governments. The resulting proceeds would be used to issue a 'Reparations Loan' to Ukraine. Lagarde, speaking to European lawmakers in Strasbourg, warned that any move perceived as legally questionable could undermine the credibility of the euro and destabilize financial markets by deterring investors. She stressed the importance of ensuring that any financial mechanism adheres strictly to legal standards and involves consensus among all holders of the frozen Russian assets. The funds in question are currently held in Euroclear, a central securities depository in Belgium, after the bonds they were invested in matured.
https://www.reuters.com/world/uk/britain-sends-ukraine-second-part-3-billion-war-loan-2025-04-14/ - On April 14, 2025, Britain disbursed £752 million ($990 million) to Ukraine as the second installment of a three-part war loan totaling £2.26 billion. These funds are designated for purchasing air defenses, artillery, and equipment maintenance. This loan is part of a larger $50 billion international aid package supported by frozen Russian assets. The initial installment was paid on March 6, with the third due next year. British officials, including Finance Minister Rachel Reeves and Defence Minister John Healey, emphasized the importance of supporting Ukraine amid ongoing global instability and continued Russian aggression. In total, Britain plans to provide £4.5 billion in aid to Ukraine in 2025. The UK Ministry of Defence is also aiding Ukraine in acquiring radar systems, anti-tank mines, and hundreds of thousands of drones. This assistance follows a deadly Russian missile strike on the Ukrainian city of Sumy, killing 34 and injuring 117. British political support for Ukraine remains strong across the public and major parties, and the British government has pledged to incrementally increase its defense spending in response to security challenges.
https://www.reuters.com/world/europe/russias-uk-embassy-denounces-g7-loans-ukraine-fraudulent-scheme-2024-12-21/ - The Russian embassy in London has criticized Britain's plan to transfer over £2 billion ($2.5 billion) to Ukraine backed by frozen Russian assets, calling it a 'fraudulent scheme.' This transfer is part of a larger loan from the Group of Seven (G7) nations, including Canada, France, Germany, Italy, Japan, the US, and the EU, to assist Ukraine in buying weapons and rebuilding infrastructure. The embassy accused the UK of expropriating income from Russian state assets frozen in the EU. British Defence Minister John Healey indicated the funds would support Ukraine's military, potentially for drone development. Russia's Foreign Ministry previously condemned the US transfer of its G7 loan share as 'robbery.'

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 10

Notes: The narrative is current, with the earliest known publication date being October 10, 2025. The UK, France, and Germany announced their agreement to utilise frozen Russian sovereign assets to support Ukraine's military efforts on this date. ([reuters.com](https://www.reuters.com/world/europe/britain-france-germany-move-closer-giving-russian-assets-ukraine-2025-10-10/?utm_source=openai))

Quotes check

Score: 10

Notes: No direct quotes were identified in the provided text, indicating potential originality or exclusivity of the content.

Source reliability

Score: 10

Notes: The narrative originates from the BBC, a reputable organisation known for its journalistic standards, lending credibility to the report.

Plausability check

Score: 10

Notes: The claims are plausible and align with recent developments. The UK, France, and Germany have been discussing the utilisation of frozen Russian assets to support Ukraine, with announcements made on October 10, 2025. ([reuters.com](https://www.reuters.com/world/europe/britain-france-germany-move-closer-giving-russian-assets-ukraine-2025-10-10/?utm_source=openai))

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative is current, originates from a reputable source, and presents plausible claims consistent with recent developments. No significant issues were identified, indicating a high level of credibility.

Ukraine conflict
Russian assets
European support