Ministers could see off the “devastating effect” of a possible Trump win next month by confiscating frozen Russian sovereign assets, an MP has claimed.
Helen Maguire, the Liberal Democrats’ defence spokeswoman, urged Defence Secretary John Healey to quickly repurpose frozen assets to bolster Ukraine’s war chest, in case the next US president decides to ease their support for Kyiv.
Mr Healey and Chancellor Rachel Reeves unveiled on Tuesday a new £2.26 billion fund for Ukraine, paid for using interest on frozen Russian assets, which Conservative former minister Sir Julian Lewis described as a “delicious irony”.
Mr Healey told the Commons there was no indication America would change its stance on the war in eastern Europe when he met with Nato defence ministers last week and described the new money as “valuable”.
Ms Maguire agreed the new money would be of “immense value” to Ukraine, but added: “We must go further, faster. Russia must not and cannot succeed.
“There remains £22 billion of frozen assets locked up in our country. We urge the Government as we have done for years to seize these assets and repurpose them for Ukraine right away.”
The Liberal Democrat spokeswoman added: “With the US elections fast approaching, it’s deeply worrying that our commitments to our Ukrainian allies is uncertain.
“A second (Donald) Trump presidency could have a devastating effect on the security of Europe and of Ukraine, so we urge the Government: seize these assets now so that we can support Ukraine come what may. We must lead with Europe on this.”
Republican nominee Mr Trump faces Democratic candidate Kamala Harris in the US vote, which takes on November 5.
Mr Trump suggested at a South Carolina rally earlier this year he “would encourage (Russia) to do whatever the hell they want” to Nato members which “didn’t pay”.
The Defence Secretary replied to Ms Maguire: “In fairness to the party opposite (the Conservatives), when they were in government, and her party before the election, as we did, we were united in the efforts to try and get the interest drawn down from the frozen Russian assets, put in Ukrainian hands.
“And the UK Government before the last election and since has been leading this work. This is practical steps we can take now.
“Whatever the declaratory position she wants to adopt about seizing Russian assets, this is valuable additional funding that from the new year will be in the hands of the Ukrainian government to be able to spend in the UK’s case on the military aid that they need.”
The delicious irony of the interest on Kremlin kleptocrats’ ill-gotten gains being used to fund the resistance against Russian aggression will not be lost on members in all parts of this House
Sir Julian later said: “The delicious irony of the interest on Kremlin kleptocrats’ ill-gotten gains being used to fund the resistance against Russian aggression will not be lost on members in all parts of this House.”
He asked Mr Healey about “disobliging remarks about the Nato alliance” by politicians in the US. Mr Healey said: “At no point during the two days of Nato defence ministers’ talks was there any indication of the sort of views that he suggests may be held by some in America.”
Taking a question from Conservative former minister Mark Francois about whether payments would be made in tranches, Mr Healey told the Commons: “This will be made available soon in the new year. The Ukrainians will draw it down as they need it for the purposes they decide they need it for.”
Mr Francois also urged the Cabinet minister confirm that “this money will in no way be included in the overall defence budget next week and will in no way be attempted to bolster or bump that up, because there are rumours there will actually be cuts”.
Mr Healey replied: “I can give (Mr Francois) that assurance – this is a one-off, it is additional, it is separate, it will be accounted for and set out separately in the Treasury documentation.
“Its significance is that it is a loan to Ukraine that Ukraine will not have to pay back because it’s the interest on the frozen Russian assets that will service that loan.”
