Westminster Policy News & Legislative Analysis

Starmer and von der Leyen review US-led Ukraine plan, assets

Downing Street said Prime Minister Keir Starmer spoke with European Commission President Ursula von der Leyen on 13 December 2025. The call covered the US‑led peace framework for Ukraine, progress on mobilising frozen Russian sovereign assets, and implementation of measures announced at the May UK‑EU summit. Both sides noted forward movement and pledged continued coordination.

On the peace track, recent reporting indicates the US draft has been pared back from 28 points to around 20 after European input, with Kyiv stressing that any settlement must protect sovereignty and avoid forced territorial concessions. European leaders have described this as a critical window while texts are refined.

On financing, the discussion on Russian sovereign assets comes as the EU shifts to a more durable regime. The bloc has agreed to indefinitely immobilise roughly €210 billion in Russian central bank reserves; the European Parliament has approved a mechanism to service and repay loans with revenues from immobilised assets; and the Commission has been disbursing tranches under the G7 ERA loans through 2025. EU leaders meet on 18–19 December to consider further steps.

For UK‑EU relations, the May summit adopted three documents: a Joint Statement, a Security and Defence Partnership, and a Common Understanding on a renewed cooperation agenda. These commit both sides to regular senior‑level dialogues, deeper work on internal security and justice, and continued immobilisation of Russian sovereign assets until Russia compensates Ukraine for war damage.

The Security and Defence Partnership establishes structured consultations and joint work on sanctions implementation, countering Russia’s shadow fleet, maritime and space security, and critical‑infrastructure resilience, with scope-where mutually agreed-for UK participation in selected EU initiatives. Terms for participation in the Commission’s proposed SAFE procurement instrument have not been finalised after talks faltered in late November, though engagement continues via other channels.

For sanctions and financial‑crime teams, a permanent immobilisation framework implies longer‑run compliance planning for banks and central securities depositories; for treasurers, the Ukraine Loan Cooperation Mechanism offers a clearer pathway for allocating windfall proceeds to loan servicing; and for defence firms, the Partnership signals more predictable EU‑UK coordination. EU leaders convene on 18–19 December, providing a near‑term decision point.

On trade facilitation, the Prime Minister said in May that the UK and EU had agreed a sanitary and phytosanitary arrangement to ease food and agriculture trade, which-once implemented through technical work and domestic measures-should cut costs and border friction. Businesses should monitor operational guidance and statutory instruments setting timelines.

Downing Street’s 12 November readout recorded similar emphasis on implementing the May package. With the European Council meeting next week, the 13 December call indicates London and Brussels are aligning diplomatic, financial and technical tracks around support for Ukraine and delivery of the summit commitments.