British banks oppose using frozen Russian assets for Ukraine

British banks oppose the use of frozen Russian assets to help Ukraine due to high legal risks and the lack of state guarantees. Financiers fear lawsuits from Russia and possible financial losses in the event of default. This is reported by  UNN with reference to  Financial Times.

DetailsUK banks oppose the use of Russian assets blocked in the kingdom to lend to Ukraine. Financial and credit institutions are concerned about significant risks of lawsuits from Russia.

It is noted that the British government has not provided banks with guarantees in case of possible retaliatory actions by Moscow.

One of the publication’s interlocutors explained that the kingdom’s authorities “are creating a new precedent, as they have never seized assets in this way before.” Bankers expressed confidence that “Russia will sue” in response.

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According to their estimates, the legal risk lies in the absence of guarantees that a potential peace agreement between Ukraine and Russia will include Moscow’s payment of reparations that could cover a Western loan to Kyiv. In fact, it is not a real loan, but a “gift”, and banks understand that they will have to return the main collateral, which “will almost certainly lead to default.”

According to the publication, the amount of Russian assets currently frozen in the UK is approximately 8 billion pounds sterling. 

RecallOn December 12, 2025,  the European Union  agreed  to indefinitely freeze the assets of the Russian central bank held in Europe. This removed a significant obstacle to using these funds to help Ukraine defend itself against Russia.  

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