It is time to seize billions in Russian assets
4 min read
The interest on Russian assets being used by Britain and Europe is a drop in the ocean. We must go much further to fund the rebuilding of Ukraine.
Ukrainians fight this war on behalf of all of us. Britain and Ukraine have never been closer.
As chairs of the foreign affairs committees of the Ukrainian and UK parliaments, we jointly demand the seizure of Russian state assets so that they can be used to rebuild Ukraine.
Last month, members of the British Foreign Affairs Committee went to Ukraine, and on Tuesday, our two committees held a joint session. We talked about our common challenges, which include countering Russian disinformation. The Brits have been learning about the profound and devastating impact of Russia’s invasion of Ukraine from a parliament that still has sandbags against the windows and doors and which, when the Russians were at the edge of Kyiv, continued meeting in the basement.
We all want a just peace. But as Ukrainian committee member Mariia Ionova said in our joint session, a just and fair peace means no capitulation or appeasement. Unfortunately, the non-events of last week show that this is going to be a real challenge. It is disappointing that President Putin refuses to take peace negotiations seriously. Meanwhile, the UK must continue to work in lockstep with our European allies to underscore our unwavering, collective support for Ukraine, threatening new sanctions if Russia fails to comply. Whatever Ukraine chooses next, the UK will continue to provide steadfast support.
The rebuilding of Ukraine must happen, and it is the unanimous belief of everyone on both committees that we must seize the billions in frozen Russian state assets to make this happen. In our joint session, we discussed how seized assets could be used to support Ukraine.
It is estimated that Russia’s foreign exchange reserves are in excess of €300bn, held mostly in Europe. After the full-scale Russian invasion of Ukraine, G7 countries froze these funds. It is thought that up to £26bn of Russian Central Bank assets may remain frozen in the UK.
At the moment, Britain and Europe are using the interest on these assets as a form of income for Ukraine. But this is a drop in the ocean. Huge amounts of money need to be spent on rebuilding Ukraine. Chatham House estimates that the reconstruction of Ukraine could cost between $500bn and $1 trillion.
We need to go much further than we already have.
Some worry that seizing Russian state assets is contrary to international law. As two lawyers, we are confident that it isn’t. Russia is under an international law obligation to make reparation for its wrongful acts, and the doctrine of ‘countermeasures’ can be relied upon.
Increasing numbers of people from across Europe agree with us that these assets must be used to fund the rebuilding of Ukraine. But there is some dragging of feet. Other European countries like Belgium sit on far greater Russian state reserves than we do. Britain must redouble its efforts, working with the Ukrainians, to bring our European allies into line with the majority opinion of the European people. In our joint session, the UK was described as Ukraine’s advocate and “attorney” on the world stage, making the case for support to countries such as the US.
Putin wants to take Ukraine for his own, or to break Ukraine. If he gets his way, make no mistake: he will not end there. He will be encouraged in his desire to dominate the countries of Eastern Europe. He is already flexing his muscles in Moldova, Romania, Georgia, the Baltic States, and even Germany.
Ukrainians have fought for years for their freedom, against an authoritarian aggressor whose country is twenty times bigger. Despite the pain and suffering inflicted on them, Ukrainians fight on with huge courage.
Be under no illusion: Ukrainians fight this war not just for themselves but for the whole of Europe. Europe must do the right thing. We must seize Russian assets and use them to pay for the rebuilding of the Ukrainian nation. Slava Ukraini!
Dame Emily Thornberry MP and Dr Oleksandr Merezhko are chairs of the UK and Ukraine foreign affairs committees respectively.
