Calls to seize frozen Russian assets in the UK and EU are intensifying after Donald Trump paused aid to Ukraine.
Currently, it is estimated over £200billion worth of Russian assets are frozen in Europe, with over £30billion of that in the UK.
The assets were frozen when Russia invaded Ukraine just over three years ago, but European countries have not gone as far as committing the assets to the defence of Ukraine.
However, with Trump’s pausing of US aid to Ukraine, there are growing calls to seize the assets (unfreeze) and redirect them towards Ukraine in the form of financial support or weapons.
Internationally, these calls are being led by countries like Poland, Latvia and Estonia, all who are fearful of Russian aggression due to their proximity to Russia.
In the UK, high-profile names like former PMs Sunak and Cameron have argued for seizing the assets, as well as current Foreign Secretary David Lammy.
However, seizing assets is not as simple as it seems and comes with some major risks.
Firstly, seizing assets on such a large scale would severely undermine the principle of sovereign assets, challenge international law and send shockwaves through international markets.
Secondly, seizing assets from countries Europe doesn’t like could make places like Saudi Arabia and China nervous about investing in Europe. This is the line French President Emmanuel Macron and the German Central Bank argue.
Thirdly, there is the question of what to do with the seized assets- whether they should be sent to Ukraine as financial aid or in the form of weapons.
If the latter, then European countries would need to decide where to buy weapons from.
Should it be from the US who will then enjoy massive benefit from the economic investment, or from European countries? (EU countries have only ordered 22% of their military equipment from Europe).
Given the dire need for European countries to rearm, governments would also have to bat away severe pressure for Russian assets to be used to pay for rearmament at home, something Ukraine sceptics will be pushing for.
What could frozen Russian assets buy?
It is no understatement to say the frozen Russian assets, if realised, could be game changing for Ukraine.
Most estimates put the total value of frozen assets at roughly $300billion (£233.67billion).
For context, that’s over four times bigger than the UK’s entire defence budget last year (£53.9billion) and easily bigger than China’s defence budget (second largest in the world after the US).
In the UK alone there are thought to be up to £30billion ($38billion).
Here is what frozen the $300billion frozen Russian assets could buy:
The F-35 is a fifth-generation stealth multirole fighter aircraft.
It is one of the most advanced aircraft in the world and has been something Ukraine has been campaigning to have for years but was always seen as a step too far by western nations.
The US has 600 across the services and the UK has 35.
As the Ukraine conflict has showed us, drone warfare is a hugely important part of the modern battlefield.
The MQ-9 reaper is a medium-altitude, long-endurance unmanned aerial vehicle (UAV) used for intelligence, surveillance, reconnaissance, and precision strike missions.
A fleet of even 1,000 of these drones would be a formidable opponent and seriously swing the battle in Ukraine’s favour.
The AH-64 Apache is a highly versatile and powerful attack helicopter with advanced sensors, weapons, and survivability features.
It remains one of the most formidable helicopters in the world, essential to modern military operations.
Ukraine’s requests have been denied for this helicopter, but funds seized from Russian assets could allow Zelensky to purchase these machines, swinging the air war in his favour.
Patriot is a mobile surface-to-air missile (SAM) system that counters tactical ballistic missiles, cruise missiles, and advanced aircraft.
It has been critical in Ukraine for repelling Russian aerial attacks after Donald Trump approved its use.
The US has 150 Patriot systems. Each missile it fires cost roughly $3-$4million.
The Army Tactical Missile System (ATACMS) is a long-range, guided surface-to-surface missile developed by Lockheed Martin.
Another crucial piece of military hardware donated to Ukraine, these weapons allow Ukrainian forces to strike Russian targets well behind the front line as they have a range of up to 300 kilometres.
America’s main battle tank is another world leader renowned for their advanced armour, firepower, and mobility.
Biden gave Ukraine 31 of its 6,000 M1 Abrams, but they were withdrawn from service after being found to be too vulnerable to Russian drone attacks.
LATEST FROM MEMBERSHIP:
It comes after Keir Starmer committed a new £2.6billion package for Ukraine backed by the profit from frozen assets.
Chancellor of the Exchequer Rachel Reeves said: “A safe and secure Ukraine is a safe and secure United Kingdom. This funding will bolster Ukraine’s armed forces and will put Ukraine in the strongest possible position at a critical juncture in the war.
“It comes as we have increased our defence spending to 2.5% of GDP, which will deliver the stability required to keep us safe and underpin economic growth.”
However, critics of Ukraine support argue the UK should be using the money to look after its own people like pensioners and farmers or controlling illegal immigration.
Donald Trump, who froze US aid to Ukraine after a public spat in the Oval Office, has said he may consider allowing aid to continue after Zelensky sent a letter the President.
Zelensky expressed desire for peace under the US's strong leadership and looks set to sign Trump's mineral demand.
Find Out More...
Currently, it is estimated over £200billion worth of Russian assets are frozen in Europe, with over £30billion of that in the UK.
The assets were frozen when Russia invaded Ukraine just over three years ago, but European countries have not gone as far as committing the assets to the defence of Ukraine.
However, with Trump’s pausing of US aid to Ukraine, there are growing calls to seize the assets (unfreeze) and redirect them towards Ukraine in the form of financial support or weapons.
Internationally, these calls are being led by countries like Poland, Latvia and Estonia, all who are fearful of Russian aggression due to their proximity to Russia.
In the UK, high-profile names like former PMs Sunak and Cameron have argued for seizing the assets, as well as current Foreign Secretary David Lammy.
However, seizing assets is not as simple as it seems and comes with some major risks.
Firstly, seizing assets on such a large scale would severely undermine the principle of sovereign assets, challenge international law and send shockwaves through international markets.
Secondly, seizing assets from countries Europe doesn’t like could make places like Saudi Arabia and China nervous about investing in Europe. This is the line French President Emmanuel Macron and the German Central Bank argue.
Thirdly, there is the question of what to do with the seized assets- whether they should be sent to Ukraine as financial aid or in the form of weapons.
If the latter, then European countries would need to decide where to buy weapons from.
Should it be from the US who will then enjoy massive benefit from the economic investment, or from European countries? (EU countries have only ordered 22% of their military equipment from Europe).
Given the dire need for European countries to rearm, governments would also have to bat away severe pressure for Russian assets to be used to pay for rearmament at home, something Ukraine sceptics will be pushing for.
What could frozen Russian assets buy?
It is no understatement to say the frozen Russian assets, if realised, could be game changing for Ukraine.
Most estimates put the total value of frozen assets at roughly $300billion (£233.67billion).
For context, that’s over four times bigger than the UK’s entire defence budget last year (£53.9billion) and easily bigger than China’s defence budget (second largest in the world after the US).
Frozen Russian Assets vs World's Biggest Annual Defence Budgets
In the UK alone there are thought to be up to £30billion ($38billion).
Here is what frozen the $300billion frozen Russian assets could buy:
- 3,750 F-35 Fighter Jets (roughly $80million each)
The F-35 is a fifth-generation stealth multirole fighter aircraft.
It is one of the most advanced aircraft in the world and has been something Ukraine has been campaigning to have for years but was always seen as a step too far by western nations.
The US has 600 across the services and the UK has 35.
- 10,000 MQ-9 Reaper Drones (roughly $30million each)
As the Ukraine conflict has showed us, drone warfare is a hugely important part of the modern battlefield.
The MQ-9 reaper is a medium-altitude, long-endurance unmanned aerial vehicle (UAV) used for intelligence, surveillance, reconnaissance, and precision strike missions.
A fleet of even 1,000 of these drones would be a formidable opponent and seriously swing the battle in Ukraine’s favour.
- 8,500 AH-64 Apache Attack Helicopters (roughly $35million each)
The AH-64 Apache is a highly versatile and powerful attack helicopter with advanced sensors, weapons, and survivability features.
It remains one of the most formidable helicopters in the world, essential to modern military operations.
Ukraine’s requests have been denied for this helicopter, but funds seized from Russian assets could allow Zelensky to purchase these machines, swinging the air war in his favour.
- 300 Patriot Missile Systems (roughly $1billion each)
Patriot is a mobile surface-to-air missile (SAM) system that counters tactical ballistic missiles, cruise missiles, and advanced aircraft.
It has been critical in Ukraine for repelling Russian aerial attacks after Donald Trump approved its use.
The US has 150 Patriot systems. Each missile it fires cost roughly $3-$4million.
- 200,000 ATACMS Missiles (roughly $2million per missile)
The Army Tactical Missile System (ATACMS) is a long-range, guided surface-to-surface missile developed by Lockheed Martin.
Another crucial piece of military hardware donated to Ukraine, these weapons allow Ukrainian forces to strike Russian targets well behind the front line as they have a range of up to 300 kilometres.
- 15,000 M1 Abrams Tank (roughly $19million each)
America’s main battle tank is another world leader renowned for their advanced armour, firepower, and mobility.
Biden gave Ukraine 31 of its 6,000 M1 Abrams, but they were withdrawn from service after being found to be too vulnerable to Russian drone attacks.
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It comes after Keir Starmer committed a new £2.6billion package for Ukraine backed by the profit from frozen assets.
Chancellor of the Exchequer Rachel Reeves said: “A safe and secure Ukraine is a safe and secure United Kingdom. This funding will bolster Ukraine’s armed forces and will put Ukraine in the strongest possible position at a critical juncture in the war.
“It comes as we have increased our defence spending to 2.5% of GDP, which will deliver the stability required to keep us safe and underpin economic growth.”
However, critics of Ukraine support argue the UK should be using the money to look after its own people like pensioners and farmers or controlling illegal immigration.
Donald Trump, who froze US aid to Ukraine after a public spat in the Oval Office, has said he may consider allowing aid to continue after Zelensky sent a letter the President.
Zelensky expressed desire for peace under the US's strong leadership and looks set to sign Trump's mineral demand.
Find Out More...