Britain is prepared to transfer GBP8bn ($10.6bn) in frozen Russian assets held in the United Kingdom to support Ukraine, The Times reported on December 4, citing senior government officials.

The newspaper said the UK is positioning itself as a broker in talks with the EU, Canada and other partners on a broader international deal that could free up as much as GBP100bn ($133bn) in frozen Russian funds for Ukraine. Such a pool of financing, it noted, would be enough to cover more than two-thirds of Kyiv’s financial needs over the next two years, whether the war continues or a peace agreement is reached.

On December 3, European Commission President Ursula von der Leyen announced that the Commission had approved a “reparations loan” mechanism for Ukraine backed by frozen Russian assets. According to an IMF estimate cited by The Times, Ukraine will require €135bn in 2026–2027 to fund government operations and sustain defence efforts.

The proposed EU mechanism would allow Ukraine to borrow against profits generated by immobilised Russian central bank reserves, while the principal would remain untouched. The UK move would complement these efforts, the newspaper said, as London seeks to coordinate a unified Western approach.

Russia reacted sharply to the latest initiatives. Foreign Ministry spokeswoman Maria Zakharova warned on December 4 that Moscow is preparing a package of retaliatory measures if European governments move to seize or redirect Russian sovereign assets.

Western governments froze roughly $300bn in Russian central bank reserves after Moscow’s invasion of Ukraine in February 2022. Until recently, many capitals resisted calls to use or transfer the assets directly, citing legal and financial risks. However, discussions have intensified in recent months as Ukraine faces mounting budget pressures and uncertainty over future US assistance.

The Times added that UK officials believe momentum is shifting toward a collective international plan, with London and Ottawa among the most active supporters of using frozen Russian funds to back long-term assistance for Kyiv.