Overview

• Chancellor Rachel Reeves presented the concept to EU finance ministers in Copenhagen, calling it right to explore all options to support Ukraine.
• Around £25 billion in Russian state assets are frozen in the UK, and the Treasury says proposals under consideration could unlock financing up to that full amount.
• The European Commission is exploring a parallel approach that could raise up to €172 billion by swapping cash tied to immobilized assets for EU‑backed zero‑interest bonds.
• Under the EU model described by officials, Ukraine would not have to repay until Russia pays war reparations.
• The effort comes as the G7’s earlier €45 billion loan is almost fully disbursed and as the ECB and Euroclear caution against legal and financial risks.