British Premier says confiscating Russian assets is ‘complicated’

(MENAFN) UK Prime Minister Keir Starmer has described the idea of confiscating frozen Russian assets to support Ukraine as a complex and delicate matter, emphasizing the need for a balanced approach. Since the start of the Ukraine conflict in 2022, Western countries have frozen approximately $300 billion in Russian sovereign assets, including €200 billion held by Euroclear in Brussels and around £25 billion in the UK.

Starmer told Parliament that reaching an agreement on what to do with these funds at the upcoming G7 summit is challenging due to various legal and diplomatic considerations. While the UK supports seizing the assets to aid Ukraine, some G7 members like France, Germany, and Italy advocate caution, preferring to use the funds as leverage rather than confiscate them outright.

The frozen assets have already generated significant interest, with over $1.6 billion transferred to Ukraine last year to support a $50 billion G7 loan. However, the International Monetary Fund has warned that confiscation without clear legal grounds could damage confidence in global financial institutions. Russia has condemned the freezes and hinted at potential retaliatory actions against Western investments.

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