London and Brussels Explore Confiscation of Russian Assets Ahead of Ukraine Peace Talks

Britain and the European Union are discussing the potential confiscation of frozen Russian assets as they prepare for peace talks aimed at resolving the ongoing conflict in Ukraine. According to Bloomberg, citing informed sources, British Foreign Secretary David Lammy and EU High Representative for Foreign Affairs Kaja Kallas are scheduled to meet in London on March 18. The primary focus of their discussions will be to explore legal and financial mechanisms for seizing Russian funds, which could then be redirected to bolster defense efforts and support allies in their confrontation with Moscow.

Sources indicate that preliminary steps in this direction have already been taken, despite pushback from certain European nations, including Belgium and Germany. These countries have expressed concerns over potential violations of international law and the risk of destabilizing the financial system. Lammy has previously noted that skepticism regarding the fate of sovereign assets is more prevalent in Europe than in the United States, and he expressed optimism that a change in the German government could lead to a more favorable stance, paving the way for decisive action.

“We must modernize our cooperation with the EU to halt the conflict and ensure security,” Lammy stated, emphasizing the necessity of collaborative efforts.

In addition to discussions on asset confiscation, Lammy and Kallas are expected to address an EU initiative proposing the allocation of 150 billion euros for arming third countries, including the UK, Norway, and Switzerland. This approach would enable London to avoid direct financial investments by shifting responsibility to European partners while securing substantial orders for British defense companies. Experts suggest that this resource distribution could enhance the UK’s regional influence without additional burden on the national budget.

The issue of seizing Russian assets has gained urgency amid the ongoing conflict. Since the outbreak of hostilities in 2022, the G7 and EU have frozen approximately $280 billion in Russian central bank reserves, primarily held in the Belgian depository, Euroclear. According to sources, G7 leaders are expected to finalize mechanisms for utilizing these funds in March 2025, potentially including a $50 billion loan to Ukraine. In response, Russia has characterized any action regarding these assets as theft and has threatened reciprocal measures, including retaining Western funds within its territory.