The United Kingdom and the European Union will advance talks on how to seize frozen Russian assets in order to jointly increase defense spending, amid searching for ways to increase economic pressure on Russian dictator Vladimir Putin before any peace talks to end his war with Ukraine, Bloomberg reports, writes UNN.
Details
Foreign Minister David Lammy and EU chief diplomat Kaya Kallas will consider "innovative initiatives" to jointly increase European defense funding and increase military readiness at a meeting in London on Tuesday, the British Foreign Office said.
The talks will include how Europe ensures it has the right legal and financial cover to seize billions in Russian assets, according to people familiar with the matter
Progress is being made despite resistance from some European countries, such as Belgium and Germany, which remain concerned that confiscation could breach the principle of state immunity under international law and affect the euro, they said.
"It is not the United States that has raised consistent concerns about sovereign assets...it’s actually within Europe," Lammy said in the House of Commons on Monday. A change of administration in Germany may allow the country to change its position on this issue, he said.
Lammy and Kallas will also discuss the EU’s proposal to allow member states to invest €150 billion ($164 billion) of EU loans on defense hardware, which can be spent on weapons from some third countries like the UK, Norway and Switzerland, the people said. The UK wouldn’t have to pay into the fund, but would benefit from EU states placing orders with British defense firms.
"It is vital that we improve our partnership with the EU and work together to end this war and ensure the safety of all our citizens," Lammy said in his statement.
Addition
Europe's efforts to increase pressure on Russia preceded another conversation between US President Donald Trump and Putin on Tuesday. The US is insisting that Russia agree to a 30-day ceasefire, which Ukraine says it is ready to accept.
The EU, the G7 countries and Australia have frozen about $280 billion in assets of the Russian central bank in the form of securities and cash, mostly through the Belgian clearing house Euroclear. Sanctions imposed on prominent Russian individuals have frozen another $58 billion in assets, including homes, yachts and private jets.