Reeves tells EU ‘the time to act is now’ in seizing Russian assets for Ukraine
The rallying call by the Labour former Cabinet minister comes as Donald Trump seeks to pressure Kyiv ‘to cut a deal with Moscow’.
Former chancellor Rachel Reeves has urged Brussels to seize control of 210 billion euros (£175 billion) in frozen Russian assets to help Ukraine defend against Kremlin aggression in the face of “a desperate winter”.
In her first significant intervention since leaving Government, the Labour former Cabinet minister told the European Union that “the time to act is now”, with Kyiv confronting a funding blackhole and US President Donald Trump seeking to pressure the embattled country “to cut a deal with Moscow”.
She warned without the funding Ukraine’s “capacity to sustain its defence will be gravely impaired”, which in turn would “undermine Europe’s security”.
Ms Reeves, who was sacked as chancellor by Andy Burnham when he took office, issued the rallying call for urgent action in an article in The Times penned along with three other senior politicians from Germany, France and Canada.
It said: “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.”
The quartet pointed out 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.”
Relations between the US and Ukraine have been strained after Mr Trump struck a diesel deal with Russia in the face of rising fuel prices and waived fresh sanctions against the Kremlin.
The US president also recently declined to blame Russia’s leader Vladimir Putin for starting the conflict and sought to portray Ukraine’s Volodymyr Zelensky as an obstacle to peace.
The public row was followed by disruption to Kyiv’s access to the vital Starlink satellite communications system, leaving the country exposed to attack.
In the article, Ms Reeves and her co-authors said: “Moscow has an obligation under international law to pay compensation for its illegal invasion.
“Using these funds to help Ukraine defend itself would not only be just, it would also be more acceptable to our fellow citizens than using more European taxpayers’ money or further borrowing.”
A previous attempt to tap into the funds last year to help Ukraine failed over concerns the liability would fall on the Belgian bank which held most of the assets and so “expose it to unacceptable risks”.
To counter this, Ms Reeves and others 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 the risks in the event Moscow “considers acts of retaliation”.
They pointed out there was precedent for this following the fall of former Iraqi leader Saddam Hussein, which saw the EU transfer Iraqi assets to an account at the Federal Reserve Bank of New York.
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.
“Although other allies, including Canada and the United Kingdom, must do their bit, the European Union will have to take the lead in filling the funding gap.”
They argued if the bloc moved “others will follow”, although it was acknowledged 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.