Canada And Britain Approve $300 Billion In Russian Reparations To Ukraine
- 15.10.2025, 8:42
The countries are ready to act together.
The EU is preparing for a political decision on the application of Russia's frozen assets. Britain and Canada said they are ready to act jointly.
This is reported by Bloomberg.
As noted in the report, Britain and Canada supported the European Union's plan to use part of the nearly $300 billion in frozen assets of the Russian Central Bank held by the G7 countries. The initiative aims to strengthen financial support for Ukraine.
Western officials said EU allies are close to an agreement to provide Ukraine with loans through a mechanism that would allow assets not to be confiscated directly. The decision is seen as an important step to strengthen the country's financial stability.
The funds are planned to be used for arms purchases, including supplies from the United States, after Donald Trump's administration decided to charge a fee for weapons supplied. Part of the funding will also be used to support the Ukrainian economy.
According to British Foreign Office data released in March, more than 25 billion pounds ($33.3 billion) of Russian assets have been frozen in the UK. The EU controls about 200 billion euros (232 billion dollars). Until now, Ukraine has only received funds from profits and interest accrued on those assets.
Most of Russia's reserves are held through the Belgian clearing house Euroclear, prompting caution from Belgium and some other countries. Brussels is pushing for an insurance mechanism in case of possible legal claims from Russia.
According to sources, the EU or a group of member states are ready to provide Euroclear with guarantees to cover potential risks. The issue of legal guarantees remains a key sticking point in the negotiations.
The EU expects to reach a political agreement on the use of Russian assets as early as next week at a meeting in Brussels. The European Commission will then begin drafting a legal mechanism that will allow the disbursement of funds to begin in the second quarter of 2026.
British Prime Minister Keir Starmer confirmed his willingness to coordinate with the EU following talks with the leaders of France and Germany. He emphasized that the allies intend to cooperate with other G7 countries, including the United States, where some Russian funds are also deposited.
"We are ready to move towards using, in a coordinated way, the value of frozen Russian sovereign assets to support the armed forces of Ukraine and thereby push Russia to negotiate," the leaders of France, Germany and Britain said in a joint statement.
"We agreed to develop bold and innovative mechanisms that will raise the cost of Russia's war and increase pressure on Moscow. This includes measures against Russia's shadowy navy," they added.
Future Steps
The G7 finance ministers will discuss the plan this week on the sidelines of the International Monetary Fund's annual meetings in Washington. Western officials say new sanctions against Russia's energy sector and companies involved in circumventing restrictions are also on the agenda.
In addition, measures against third countries that use Russian hydrocarbons to reduce Moscow's revenues from oil and gas exports are being discussed. The allies intend to coordinate their actions to increase economic pressure on the Kremlin.