FT: UK banks oppose using frozen Russian assets to lend to Ukraine

British banks have opposed the initiative to allocate about 8 billion pounds (over 9 billion euros) of frozen Russian assets to support Ukraine. This was reported by writes Financial Times.

The banks warned that the UK government has not offered insurance against potential retaliation by Russia. Influential bankers said that they face significant legal consequences if Russian assets are used for an interest-free loan to Ukraine.

As the FT's interlocutors explained, "bankers fear they will be left without help when Russia sues."

The advisor, who works with leading British banks, added: "The legal risk is that if Ukraine can't pay up, it will have to seize an asset that the government considers its own and Russia does not."

Information about which banks hold the assets is classified, the newspaper said. At the same time, the British authorities refused to say whether they would support the banks if they used the assets to lend to Ukraine rather than seize them completely.

The plans of the British authorities do not apply to the 28 billion pounds (almost 32 billion euros) frozen under individual sanctions against individuals associated with Russia.

The FT reminded that London's plans for a reparations loan to Ukraine are separate from similar EU initiatives, but the parties are coordinating on this issue. The newspaper's interlocutors added that agreements on the use of assets should not be expected before Christmas, but the talks in Europe were constructive.

Previously, their commercial banks were against participation in the "reparations loan" for Ukraine france was the first to speak. Paris officials said they generally support the idea of a loan, but object to the use of assets placed in private banks, as such entities are bound by contractual obligations.

• Last week The European Commission has proposed to use up to 210 billion euros of immobilized assets of the Russian central bank to provide financial assistance to Ukraine. Initially, it is planned to use 90 billion euros to be allocated over two years. This issue will be discussed at the EU summit on December 18.
• To the German Chancellor Friedrich Merz and the President of the European Commission Ursula von der Leyen failed to convince belgian Prime Minister Bart de Vever to allow Ukraine to receive a reparations loan using Russian assets frozen in Belgium.
• The financing of the state budget for 2026 depends on this money.