Sunak pushes for more seizures of Russian assets in UK to aid Ukraine

Sunak branded Labour as not being honest with the British people
Sunak branded Labour as not being honest with the British people

Rishi Sunak backed calls for the UK to seize the interest accumulating on frozen Russian assets, arguing it should be used to pay for Ukraine’s defence and recovery.

Writing in The Sunday Times to mark the second anniversary of Russia’s invasion of Ukraine, the Prime Minister said: “We must be bolder in seizing the hundreds of billions of frozen Russian assets. That starts with taking the billions in interest these assets are collecting and sending it to Ukraine.”

The move, which follows comments from the Foreign Secretary, Lord Cameron, that there was a “moral, political, legal and economic case” for seizing the interest, would free up £26bn-worth of interest for the administration in Kyiv.

Despite its influential backers, the idea has drawn condemnation from some in the banking sector, who have warned about the precedent it will set and voiced concerns around its legality. One “high-level UK banking executive” told the i newspaper that the uncertainty precipitated by the move would mean “banks would go under”, triggering a global recession with “an impact that would be greater than the 2008 banking crisis”.

Notwithstanding the sector’s resistance, Sunak also used his piece to voice an appetite to explore even more severe financial measures to hamper Russia, including working with allies to seize not just the accumulating interest, but the assets as well.

The move has the support of the chair of the Foreign Affairs Select Committee, Alicia Kearns, who used an article in the Daily Telegraph this weekend to call on the Government to “secure an international agreement on the seizing of Russian central bank assets.”

Sunak said: “With the G7, we must find lawful ways to seize the assets… and get those funds to Ukraine too.”