Deal to release $201bn for Ukraine close, Keir Starmer says
The British PM believes the release of frozen Russian funds is imminent as Ukraine peace negotiations reach a ‘critical stage’.
A deal to release up to £100bn ($201bn) of frozen Russian assets in Europe to aid Ukraine is only days away, Sir Keir Starmer believes. He said on Monday local time (Tuesday AEDT) that negotiations to end the war had reached a “critical stage”.
The UK Prime Minister held talks with Ukrainian President Volodymyr Zelensky and the leaders of France and Germany to discuss the latest US peace proposals. They also discussed European efforts to free the funds, which are frozen in European bank accounts, to pay either for Ukraine’s continuing war effort or the reconstruction of the country in the event of a peace deal.
After the talks, government sources expressed optimism that the deal was close and would be announced either this week or next. The money includes about £8bn in UK bank accounts.
The funding is seen as critical leverage for the Europeans and Ukraine in the peace talks being led by US President Donald Trump. It would provide a viable source of funding for Ukraine’s war effort for a further two years, increasing pressure on Moscow at a time when European leaders are concerned that President Vladimir Putin is gaining the upper hand.
The money, frozen since the start of the conflict, is also seen as one of the few cards the Europeans have in the peace negotiations to prevent any deal effectively being imposed on Ukraine by Washington.
A deal has so far been held up by Belgium, where the vast majority of the European assets are held. The government there has opposed transferring the money for Ukraine because of fears it could be legally liable for a sum equal to a third of its annual GDP.
However, a British government official said: “We are hopeful that a deal is going to be done in the next week or so.” A Downing Street spokesman said after the meeting that the leaders had “discussed positive progress made to use immobilised Russian sovereign assets to support Ukraine’s reconstruction”.
Also speaking after the meeting, Mr Zelensky suggested that Ukraine and European leaders would send their own counterproposals to the US in the coming days.
“I think the plan will be ready tomorrow, some time in the evening,” he said. “I think we will look at it again and send it to the US.”
Speaking before meeting Mr Zelensky, French President Emmanuel Macron and German Chancellor Friedrich Merz, Sir Keir said Europe was at a “critical stage in the push for peace”.
“The principles remain the same: we stand with Ukraine and, if there is to be a ceasefire, it needs to be a just and lasting ceasefire,” he said.
This would have to involve “hard-edged security guarantees” for Kyiv. “It is important that we bear in mind that this conflict is nearly four years old, that Russia is the aggressor, and therefore, if there is to be a ceasefire, it needs to be just,” Sir Keir said. “We know Putin does not respect agreements that don’t have hard-edged security guarantees behind them.”
The Downing Street spokesman said the US-brokered proposals were the “furthest we’ve got (towards peace) in four years”.
“It’s self-evident that things have stepped up. You’ve seen discussions between both the Ukrainians and US over the weekend, and those efforts are significant to bring peace to Ukraine,” he said. “You’ll continue to see those diplomatic efforts intensify over the coming days.”
Macron insisted that Ukraine’s allies had “a lot of cards” in the negotiations. He pointed to the funding of equipment and arms for Ukraine, the Ukrainian resistance and the economic impact of sanctions imposed by the US and Europe on Russia as positive signs.
Merz was “sceptical” about some details in documents released by the US but added: “We have to talk about it. That’s why we are here. The coming days could be a decisive time for all of us.”
US and Ukrainian negotiators completed three days of talks on Saturday. A sticking point in the proposal is the suggestion that Kyiv must cede control of the Donbas region of eastern Ukraine to Russia, which illegally occupies most but not all of the territory.
Trump claimed on Sunday that Zelensky “hasn’t yet read the proposal”.
On Monday local time, the US president appeared to suggest European countries were powerless, posting a link on Truth Social to an opinion piece in the New York Post entitled “Impotent Europeans can only fume as Trump rightly sidelines them from Ukraine deal”.
The Times
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