After Moscow started its full-scale invasion of Ukraine in 2022, The EU and G7 countries have frozen approximately $280 billion in Russian central bank assets, primarily in securities and cash, through the Belgium-based Euroclear. Sanctions against Russian individuals have led to an additional estimated $58 billion in frozen assets, including homes, yachts, and private aircraft.
British Foreign Secretary David Lammy and the EU’s top diplomat, Kaja Kallas, will meet in London on 18 March to discuss “innovative initiatives” to enhance European defense funding and bolster military readiness, according to the UK Foreign Office. The talks will focus on securing the legal and financial cover necessary to seize billions in Russian assets.
Despite the progress made in the talks, some European countries, including Belgium and Germany, have expressed concerns. They fear that the confiscation of Russian assets could violate the principle of state immunity under international law and impact the euro. Lammy stated that these concerns are primarily within Europe, not the United States. The change in the German administration may allow the country to reconsider its position, he added.These discussions come as US President Donald Trump, pivoting towards Russia, is set to speak with Russian President Vladimir Putin on 18 March to discuss a potential 30-day ceasefire, a proposal that Ukraine has said it is willing to accept.
In addition to discussing the seizure of Russian assets, Lammy and Kallas will review the EU’s proposal to allow member states to invest €150 billion ($164 billion) of EU loans in defense hardware. This initiative could fund the purchase of weapons from non-EU countries like the UK, Norway, and Switzerland. The UK would not have to contribute to the fund but would benefit from orders placed by EU states with British defense firms.
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