Downing Street said Prime Minister Keir Starmer spoke on 1 December with Ukraine’s Volodymyr Zelenskyy and France’s Emmanuel Macron. The leaders reviewed recent diplomacy, including a Ukrainian delegation in the United States, and agreed to work towards a deal providing long‑term security and a just peace for Ukraine. The call followed the Prime Minister’s discussion with NATO Secretary General Mark Rutte on 30 November.
A key item was how to draw on the value of immobilised Russian sovereign assets to support Ukraine’s regeneration and armed forces. In EU law, “immobilised” central bank reserves generate exceptional cash balances at central securities depositories; net windfall profits from those balances are now ring‑fenced and transferred at set intervals for Ukraine’s defence and reconstruction.
Since mid‑2024 the EU has operationalised this approach. The first biannual transfer of €1.5bn was made on 26 July 2024, followed by €2.1bn in April 2025. From 25 October 2024, EU rules channel 95% of these proceeds via the Ukraine Loan Cooperation Mechanism and 5% via the European Peace Facility, replacing the earlier 90/10 split.
This EU mechanism underpins the G7’s Extraordinary Revenue Acceleration loans, agreed in June 2024 to provide about $50bn, serviced and repaid by future flows of these extraordinary revenues while the principal Russian state assets remain frozen. Washington disbursed $20bn in December 2024, and the UK announced a £2.26bn contribution the previous October.
For the UK policy community, the distinction between “using the value” and seizing the assets themselves remains legally material. Under the Russia (Sanctions) (EU Exit) Regulations, frozen funds-including any interest credited-remain the property of the designated person and must stay frozen. Separately, the State Immunity Act 1978 provides enhanced protection for central bank property against enforcement.
The security track also featured. The government readout placed the call in the context of coordination with NATO leadership and work towards durable security arrangements. EU leaders have reiterated that any peace must respect Ukraine’s independence, sovereignty and territorial integrity. The UK has already set out long‑term commitments through the January 2024 security cooperation agreement and a 100‑year partnership signed in Kyiv on 16 January 2025.
For planners, these financing and security tracks converge. The European Council signalled regular and predictable 2025 support, including funding lines repaid from windfall profits on immobilised assets, giving Kyiv more certainty over budget and defence outlays through the year.
Compliance consequences are immediate. EU‑based central securities depositories must segregate and remit the net windfall profits; UK‑based firms, meanwhile, must continue to apply asset‑freeze requirements and treat any interest as equally frozen, unless licensed. The principal remains immobilised; the captured proceeds flow through the EU’s designated channels.
Political and legal headwinds persist. Belgium, home to Euroclear, has raised objections over risk‑sharing and potential liabilities, while senior Russian figures warn of extended litigation if the EU moves beyond the windfall‑profits model. These debates will shape the scope and pace of any expanded asset‑use arrangements.
The three leaders agreed to remain in close contact as talks intensify. For now, the operational pathway to “use the value” of immobilised Russian assets runs through established EU legal acts and the G7 loans framework, with UK participation delivered via its ERA contribution and existing bilateral security commitments.