Dame Emily Thornberry MP and Dr Oleksandr Merezhko said current interest being used by Britain and Europe on Russian must be taken “much further to fund the rebuilding of Ukraine”. (Alamy)
4 min read
The chairs of the UK and Ukrainian foreign affairs committees have said the interest on Russian assets being used by Britain and Europe is a “drop in the ocean” and must be taken “much further to fund the rebuilding of Ukraine”.
Writing in The House on Wednesday, foreign affairs committee chairs Labour MP Dame Emily Thornberry and Dr Oleksandr Merezhko said it is time for European countries to seize billions of pounds worth of frozen Russian assets to rebuild Ukraine.
“It is estimated that Russia’s foreign exchange reserves are in excess of €300bn, held mostly in Europe,” they wrote, following a virtual, joint meeting of the UK and Ukrainian foreign affairs committees on Tuesday.
“After the full-scale Russian invasion of Ukraine, G7 countries froze these funds. It is thought that up to £26bn of Russian Central Bank assets may remain frozen in the UK.
“At the moment, Britain and Europe are using the interest on these assets as a form of income for Ukraine. But this is a drop in the ocean.”
They said that the UK and its allies must go further, pointing to the think tank Chatham House estimating that the reconstruction of Ukraine could cost between $500bn and $1 trillion. “We need to go much further than we already have,” they wrote.
The pair, both legally trained, also dismissed concerns that seizing Russian state assets may put nations at odds with international law. These concerns are believed to have been an obstacle to European countries taking this step until now.
“As two lawyers, we are confident that it isn’t [in breach of international law],” they wrote.
“Russia is under an international law obligation to make reparation for its wrongful acts and the doctrine of ‘countermeasures’ can be relied upon.
“Increasing numbers of people from across Europe agree with us that these assets must be used to fund the rebuilding of Ukraine. But there is some dragging of feet.
“Other European countries like Belgium sit on far greater Russian state reserves than we do. Britain must redouble its efforts, working with the Ukrainians, to bring our European allies into line with the majority opinion of the European people.”
Prime Minister Keir Starmer’s official spokesperson on Wednesday told PoliticsHome there was no update when it comes to seizing Russian assets, but said that the government was keeping it under review.
Their intervention follows a call between Prime Minister Keir Starmer and Ukrainian President Volodymyr Zelensky on Tuesday evening, in which the pair agreed it was “vital to keep the pressure on Russia” amid Vladimir Putin’s continued assault on Ukraine.
“Looking ahead to further peace talks, the Prime Minister reiterated the UK’s support for Ukraine and said he was steadfast in his commitment to helping Ukraine secure a just and lasting peace,” a Downing Street spokesperson said.
The UK and European allies, along with the US, are pushing Russian President Vladimir Putin to negotiate a peace deal with Ukraine.
On Monday, US President Donald Trump said a call with Putin had gone “very well” on discussions about ending the war, claiming the Vatican would be “very interested in hosting the negotiations”.
“Just completed my two-hour call with President Vladimir Putin of Russia,” said Trump on his social media platform, Truth Social.
“I believe it went very well. Russia and Ukraine will immediately start negotiations toward a Ceasefire and, more importantly, an END to the War.”
However, while Putin described the call as “very meaningful and frank”, he still refuses to agree to a ceasefire, claiming that the “root causes” of the war must be addressed.
Ahead of Trump’s call, Zelensky posted on X, formerly known as Twitter, stating he had “reaffirmed to President Trump that Ukraine is ready for a full and unconditional ceasefire”.
“If Russia refuses to stop the killings, refuses to release prisoners of war and hostages, if Putin puts forward unrealistic demands, this will mean that Russia continues to drag out the war, and deserves that Europe, America, and the world act accordingly, including with further sanctions,” said Zelensky.
“Russia must end the war it started, and it can begin doing so any day. Ukraine has always been ready for peace.”
