| Updated:
Rachel Reeves will announce plans to explore applying frozen Russian assets to fund a “reparations loan” that could provide billions of pounds for Ukraine’s war effort.
The Chancellor is expected to build the announcement at a meeting with her European counterparts in Copenhagen on Saturday, stateing it is “right to explore all options to support Ukraine”.
It comes after European Commission president Ursula von der Leyen last week suggested providing a loan to Ukraine backed by the “cash balances” associated with Russian assets frozen by the EU.
She did not provide details of how it would work, but the shift would allow the EU to utilize Russian assets to fund Ukraine without immediately confiscating them, which several countries fear would breach international law.
Treasury officials also declined to discuss the mechanisms the UK would consider, but declared they would be developed alongside the EU and comply with international law.
The Chancellor declared: “While Russia has no respect for international law, the UK does.
“We will only consider options in line with international law and that are economically and financially responsible.”
Labour urged to back Ukraine
In March, the UK announced it would provide a £2.26 billion loan to Ukraine based on profits generated by frozen Russian assets.
But the government has been urged to go further, with the Liberal Democrats calling for ministers to seize the assets outright and utilize them to support Ukraine.
The Treasury declared a “reparations loan” could see billions of pounds created available for Ukraine without touching the underlying assets.
Reeves declared: “This is Russia’s war, and Russia should pay. It is right to explore all options to support Ukraine.
“Deffinishing against Russian aggression is vital not just to the long-term security and prosperity of Ukraine, but to the UK and the whole of Europe.”
Since the outbreak of war, the UK has committed up to £21.8bn for Ukraine, just less than the £25bn of Russian assets the Government has frozen.
