Starmer ‘ready to progress’ plans to spend frozen Russian assets on Ukraine loan

Sir Keir Starmer is “ready to progress” plans to use frozen Russian sovereign assets to support Ukraine’s war effort, he has said.

The Prime Minister has spoken with his counterparts from Ukraine, Germany and France, and indicated that Moscow could face more sanctions “in the coming days and weeks”.

Sir Keir set out his position after European leaders met in Copenhagen last week, where they discussed putting together a “reparations loan” for Ukraine, taken from the value of immobilised assets.

He signed a joint E3 statement, with German Chancellor Friedrich Merz and French President Emmanuel Macron, on Friday which read: “We will increase pressure on Russia as President Putin continues his stalling tactics and abhorrent attacks in response to peace talks.

“To that end, we are ready to progress towards using, in a co-ordinated way, the value of the immobilised Russian sovereign assets to support Ukraine’s armed forces and thus bring Russia to the negotiation table.

“We aim to do this in close co-operation with the United States of America.

“We agree to develop further bold and innovative mechanisms to increase the cost of Russia’s war and ramp up pressure. This includes driving forward action on the Russian shadow fleet.”

Sir Keir also spoke with Volodymyr Zelensky, and told him that the UK, Germany and France “were united in wanting to drive progress towards using the full value of the immobilised Russian sovereign assets to end the war and ensure a just and lasting peace in Ukraine”, according to a readout.

Sir Keir and the Ukrainian president agreed that “further sanctions in the coming days and weeks would also add to the pressure on Russia”, the document added.

No 10 said: “The Prime Minister began by sharing his heartfelt condolences to those impacted by the barbaric Russian attacks overnight.

“The leaders discussed how Russia’s systematic attacks on Ukraine’s critical national infrastructure in the lead up to winter further emphasised that (Vladimir) Putin was not serious about peace.

“It was vital Ukraine received the military equipment it needed to defend itself from Russia’s continued aggression, the Prime Minister said.”

Writing on X, Mr Zelensky said: “I appreciate his words of condolence.

“Last night, Russia carried out another terrorist attack on our cities and communities.

“One of the targets was Ukraine’s energy system, therefore, we need to strengthen our air defence and expedite every decision regarding missile and system deliveries.

“And that was the main focus of our conversation with Keir. I am grateful for his understanding of our needs and for his support.”

Mr Zelensky later added: “We are also preparing new sanctions steps against Russia.

“Keir shared some ideas that could set the right pressure.

“Every sanction decision weakens Russia’s war machine, and we will continue our joint work with all partners.”

European Commission vice-president Kaja Kallas gave members of the press in Copenhagen an insight into the structure of the scheme being discussed on the continent, which she said was “based on the frozen assets”.

She said: “The system is so that if Russia does not pay the reparations to Ukraine, then, you know, these assets are not given back.

“If Russia decides, after this war is over, to repay all the damages that they have caused, then of course, these assets will be given back, and this loan is not there.

“But if we do not take those assets into account then it is on our taxpayers, that is for sure.”