By Salma El-Sakka
Former UK chancellor Rachel Reeves has called on the European Union to seize €210bn (£175bn) of frozen Russian sovereign assets to fund Ukraine’s defence, warning that failure to act now risks European security.
Call for immediate action
In her first major intervention since leaving government earlier this year, Reeves wrote in The Times alongside former German defence minister Annegret Kramp-Karrenbauer, former French Europe minister Nathalie Loiseau, and former Canadian deputy prime minister Chrystia Freeland. The quartet argued that the EU should take custody of the assets immobilised in 2022, which could bankroll Ukraine’s defence until 2029.
Funding gap and political pressure
The article highlights a €70bn funding shortfall for Ukraine next year and warns that Kyiv’s capacity to sustain its defence will be “gravely impaired” without new money. Reeves and her co-authors said the move would also insulate support from potential political shifts in EU member states and the next US presidential election.
US-Ukraine tensions
The appeal comes amid strained relations between Washington and Kyiv, with US President Donald Trump pressing Ukraine to negotiate with Moscow, waiving sanctions on Russia, and disrupting Ukraine’s access to Starlink satellite communications.
Legal precedent and risk mitigation
Reeves cited the precedent of Iraqi assets transferred to the Federal Reserve Bank of New York after Saddam Hussein’s fall. The group proposed transferring custody of the frozen accounts to the EU itself, with the bloc providing cover against potential Russian retaliation.
Russian response
Russian President Vladimir Putin recently stated Russia is prepared for a potential war with Europe, though he said Moscow does not want one, and warned there would be no winners if tensions escalate further.
