Overview

• Chancellor Rachel Reeves will set out the exploratory plan at a meeting with European counterparts in Copenhagen on Saturday.
• Treasury officials said the approach would be developed jointly with the EU and must comply with international law.
• The model aims to unlock billions for Ukraine by backing borrowing with the cash generated by frozen assets without seizing the principal.
• The move follows European Commission president Ursula von der Leyen’s call for a loan backed by cash balances tied to immobilized Russian reserves.
• The UK has already provided a £2.26 billion loan funded by profits on frozen assets and has committed up to £21.8 billion to Ukraine while freezing about £25 billion of Russian holdings, as opposition figures press for outright seizure.