Former chancellor Rachel Reeves has called on the European Union to take control of 210 billion euros (£175 billion) in frozen Russian assets to help Ukraine defend itself against Kremlin aggression, warning that Kyiv faces "a desperate winter".
In her first major intervention since leaving government, the Labour former Cabinet minister told the EU that "the time to act is now", as Ukraine confronts a funding shortfall and US President Donald Trump seeks to pressure the country "to cut a deal with Moscow".
Funding warning for Ukraine's defence
Ms Reeves warned that without the funding Ukraine's "capacity to sustain its defence will be gravely impaired", which would in turn "undermine Europe's security".
Ms Reeves, who was replaced as chancellor by Andy Burnham when he took office, made the call for urgent action in an article in The Times co-written with three other senior politicians from Germany, France and Canada.
The article stated: "We are coming together to say we need to stand by Ukraine in its time of need. A critical next step should be for the EU to take custody of the 210 billion euros of sovereign Russian assets it immobilised in 2022 so it can use them to help Kyiv in its defence."
Proposal to transfer custody to the EU
The group pointed out that the funding would be enough to bankroll Ukraine's defence into 2029. The article said: "This eliminates the risk that elections in key EU member states next year may halt financial support for Kyiv. The assets would also fund Ukraine's defence until after the next US presidential election, at which point Washington may be more supportive than it is today."
A previous attempt to tap into the funds last year to help Ukraine failed over concerns that the liability would fall on the Belgian bank holding most of the assets and so "expose it to unacceptable risks". To counter this, Ms Reeves and her co-authors proposed to "transfer custody" of the frozen accounts to the EU itself, along with the associated liabilities. The bloc would also provide cover to mitigate risks in the event Moscow "considers acts of retaliation".
They noted there was precedent for this following the fall of former Iraqi leader Saddam Hussein, when the EU transferred Iraqi assets to an account at the Federal Reserve Bank of New York.
Pressure on Russia and next steps
Stressing the need for action, the article said: "Ukraine faces a desperate winter as Russia pummels its almost defenceless people from the air. It also faces a 70 billion-euro financial hole next year. Without new funding, Kyiv's capacity to sustain its defence will be gravely impaired. This will undermine Europe's security because Ukraine is our first line of defence against Russian aggression."
The co-authors argued that if the bloc moved "others will follow", although it was acknowledged that it was "much less probable that the United States will act". They added: "The time to act is now. This is partly because of Ukraine's financial needs but also because Trump is putting pressure on Kyiv to cut a deal with Moscow. Ukraine is ready to engage in peace talks as it has always been. But Russia must feel increased pressure to engage in genuine negotiations. The transfer of its accounts would provide this needed pressure."
Ms Reeves' co-authors were Annegret Kramp-Karrenbauer, a former German defence minister, Nathalie Loiseau, a former French minister for Europe, and Chrystia Freeland, a former Canadian deputy prime minister and finance minister.
