In a dramatic turn of events on the international stage, the United Kingdom, France, and Germany have declared their intent to move ahead with plans to use the full value of frozen Russian sovereign assets to bolster Ukraine’s war effort against Russia. This coordinated move, announced in mid-October 2025, signals a significant escalation in the West’s economic and diplomatic pressure on Moscow and comes amid intensifying hostilities in Ukraine and renewed attacks on its critical infrastructure.
According to The Times, the British government revealed on October 10 that it is actively collaborating with its French and German counterparts to explore the expropriation of Russian assets currently immobilized in Western financial institutions. The UK alone holds over £25 billion (about $33.4 billion) in frozen Russian assets, encompassing funds from the Russian Central Bank, the National Welfare Fund, and the Treasury. Across the European Union, the value of such assets is even more staggering, with nearly €211 billion (£181 billion) blocked, much of it held on the Euroclear platform in Belgium.
The leaders of the three European powers—UK Prime Minister Keir Starmer, French President Emmanuel Macron, and German Chancellor Friedrich Merz—spelled out their joint strategy in a statement issued after a high-level phone call. As reported by the British government and echoed by Reuters, the trio condemned the latest Russian strikes on Ukraine’s power grid and civilian infrastructure, pledging to "step up pressure on Moscow." They asserted, "To this end, we are ready to move forward in the direction of coordinated use of frozen Russian sovereign assets to support the Armed Forces of Ukraine and, thus, bring Russia to the negotiating table."
Coordination with the United States and the European Union is at the heart of this approach. The European leaders emphasized their readiness to act in close concert with Washington and Brussels to develop mechanisms for allocating these assets to Ukraine. The hope, they said, is to strengthen Ukraine’s resilience on the battlefield and force Russia into balanced negotiations. They also committed to "develop further bold and innovative mechanisms to increase the cost of the war for Russia and to intensify pressure," including additional measures targeting Russia’s so-called "shadow fleet"—vessels suspected of evading sanctions to transport Russian oil.
This announcement follows a series of meetings among Western finance ministers and heads of state, including the recent EU summit in Copenhagen on October 1, where the idea of a €140 billion reparations loan to Ukraine, backed by frozen Russian assets, was discussed. However, as The Times and other outlets reported, the proposal met resistance, particularly from Belgium. Belgian Prime Minister Bart De Wever insisted that EU nations must agree to share the financial risks of potential Russian retaliation—a commitment other member states were reluctant to make. As a result, no consensus was reached, and the debate continues.
While the West debates legal and financial risks, Russia’s response has been swift and unequivocal. President Vladimir Putin warned that "the global financial and economic order will be destroyed and economic separatism will only grow if the West steals Russia's frozen reserves." Kremlin spokesperson Dmitry Peskov added that "Moscow will certainly take revenge for the theft of its assets in Europe," vowing that Russia intends to prosecute those involved in the scheme.
For Ukraine, the stakes could hardly be higher. The country has endured a fresh wave of missile and drone attacks by Russian forces, leaving large swathes of Kyiv and at least eight other regions without power. Ukrainian officials reported two deaths and at least 20 injuries during the latest barrage. President Volodymyr Zelensky, in a post on X (formerly Twitter), decried the "cynical and calculated attack" on civilian and energy infrastructure, calling for "decisive action—not empty words—from the United States, Europe and the G7 in delivering air defence systems and enforcing sanctions."
In direct conversations with Prime Minister Starmer, Zelensky expressed gratitude for the UK’s support and pressed for even greater urgency. "We need to strengthen our air defence and expedite every decision regarding missile and system deliveries," Zelensky said, highlighting the need for both military hardware and economic measures. He also urged the UK to join the PURL programme, under which NATO countries purchase weapons from the US to supply Ukraine’s armed forces.
Until now, Western governments had limited themselves to sending profits and interest accrued from frozen Russian assets to Ukraine. The new plan, however, would tap into the principal value of the immobilized funds—a step seen as both bolder and riskier. As Starmer told Zelensky, the UK, France, and Germany are "united in wanting to drive progress towards using the full value of the immobilised Russian sovereign assets to end the war and ensure a just and lasting peace in Ukraine."
The leaders also signaled that more sanctions could be on the way. "Further sanctions in the coming days and weeks would also add to the pressure on Russia," said Starmer, a position echoed by his French and German counterparts. The joint statement added, "We agree to develop further bold and innovative mechanisms to increase the cost of Russia’s war and ramp up pressure. This includes driving forward action on the Russian shadow fleet."
European Commission vice-president Kaja Kallas, speaking to the press in Copenhagen, shed light on the reparations loan under discussion. She explained, "The system is so that if Russia does not pay the reparations to Ukraine, then, you know, these assets are not given back. If Russia decides, after this war is over, to repay all the damages that they have caused, then of course, these assets will be given back, and this loan is not there. But if we do not take those assets into account then it is on our taxpayers, that is for sure."
Meanwhile, the humanitarian dimension remains in focus. During their call, the leaders of the UK, France, and Germany also discussed the situation in Gaza, expressing readiness to resume humanitarian aid once a ceasefire is in place. This underscores the balancing act Western governments are attempting: supporting Ukraine militarily and economically, while also fulfilling broader international responsibilities.
Analysts note that the West’s willingness to seize or repurpose Russian assets marks a watershed moment in international finance and law. The move, if implemented, could reverberate through global markets and reshape norms governing state assets in times of conflict. As the world watches, the outcome of these debates—and the West’s resolve to see them through—may well determine not only Ukraine’s fate, but also the future of the international order itself.