Amid the ongoing conflict in Ukraine, the UK is taking a step that could deal a significant blow to Russia’s financial resources. According to The Times, the British government is prepared to transfer frozen Russian assets worth around £8 billion — approximately $10.6–11 billion — to Kyiv. This initiative, which is being discussed at the highest levels, underscores the West’s growing determination to use Moscow’s frozen funds to support Ukraine both militarily and in terms of reconstruction.
According to sources in the UK Cabinet Office, the transfer of £8 billion will be part of a broader international support package for Kyiv. London is actively coordinating efforts with the European Union, Canada, and other partners to unlock up to $130 billion in total. These funds could cover more than two-thirds of Ukraine’s financial needs for the next two years — from defense spending to infrastructure reconstruction in the event of a peace agreement.
The plan was discussed at a recent meeting of NATO foreign ministers in Brussels on December 3. British Foreign Secretary Yvette Cooper stressed the need for a “coordinated plan” to use these assets to “send a clear message to Russia: they cannot simply wait it out and dominate economically.”
While the exact mechanism for the transfer has not yet been worked out, it will involve a so-called “reparations loan,” whereby the funds will be provided in the form of a loan secured by Russian assets. This will avoid direct confiscation, minimizing legal risks for the UK.
The UK initiative fits into a broader European context. On December 3, the European Commission approved a plan to use €90 billion of Russian assets frozen in the EU (mainly in Belgium) to grant Ukraine a “reparations loan” for 2026–2027. According to IMF estimates, Kyiv will need about €135 billion during this period to support the state and the army.