A group of British members of Parliament has called for the transfer of all frozen Russian assets to Ukraine to send a clear message to Moscow that the aggressor must and will pay.

Source : an open letter from a group of MPs published in The Times, as reported by European Pravda

Details : In the letter, a group of UK legislators and politicians from allied countries say the government must decide how to legally transfer US$300 billion from the Russian Central Bank's frozen assets to Ukraine. They add that transferring at least £25.5 billion from UK accounts would send a strong signal of strategic resolve and help prevent future crises. 

"Previous loans and emergency funding are not enough – and leave western taxpayers on the hook. Only using the assets themselves ensures that Russia pays for its crimes," they wrote.

The letter came ahead of a parliamentary debate on Monday, 6 January on the seizure of frozen Russian assets to finance Ukraine during the war. The G7 countries have already committed to a US$50 billion loan to Ukraine which will be repaid using interest on frozen assets.

The UK announced in October that it will offer a £2.26 billion loan to Ukraine as part of the G7's wider aid package. Ministers believe that transferring the assets themselves could cause legal problems.

However, Mike Martin, a Liberal Democrat MP and former Army Reserve officer who is leading the debate, feels there must be another solution.

"There is an unanswerable moral, strategic and legal case for the use of Russian state assets to support Ukraine in its war effort. It’s never been more urgent than in a world where the incoming US administration might be pulling the plug on support for Ukraine," he said.

The letter was signed by more than a dozen UK MPs, as well as eight senior parliamentarians, including committee chairs, from allied countries such as Germany, Poland, the Baltic states and Finland.

They pointed out that while freezing the interest on the US$50 billion in assets is an important first step, it provides Ukraine with emergency funding for at most a year. In addition, if the assets are unfrozen, Ukrainian or G7 taxpayers will be forced to repay the loan.

Britain holds the largest amount of frozen Russian reserves outside the EU, and the MPs have said that the country could tap into its extensive global financial services sector.

"Russia’s war economy is stretched to its limit. Seizing the invader’s foreign assets is therefore strategically vital. It is legal. It will not harm financial stability," they noted. 

Background:

• In 2024, the G7 agreed to jointly provide Ukraine with a US$50 billion loan from Russian assets: the funds will be provided formally as a loan, but will be repaid through a tax on excess profits received from frozen Russian assets.
• At the end of December, Ukraine received the first tranche of the planned US$20 billion from the United States.

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