Lammy, Kallas lead talks on seizing Russian assets ahead of potential peace talks to end war in Ukraine

Bloomberg reported the information.

According to the UK Foreign Office, Foreign Secretary David Lammy and the EU’s top diplomat, Kaja Kallas, will meet in London on Tuesday to review “innovative initiatives” to ramp up European defense funding and enhance military readiness.

The talks will also focus on how Europe can ensure it has the appropriate legal and financial frameworks to seize billions of dollars in Russian assets, as reported by sources familiar with the matter. While progress is being made, some European countries, including Belgium and Germany, have raised concerns that confiscating assets could violate the principle of state immunity under international law and could have an adverse impact on the euro.

“It is not the United States that has raised consistent concerns about sovereign assets... it’s actually within Europe,” Lammy remarked in the House of Commons on Monday. He also suggested that the recent change of administration in Germany might lead to a shift in the country's position on this issue.

The EU's efforts to ramp up pressure on Russia come ahead of a scheduled call between U.S. President Donald Trump and Putin on Tuesday, with the U.S. pushing for Russia to agree to a 30-day ceasefire, which Ukraine has expressed willingness to accept.

The EU, Group of Seven countries, and Australia have frozen approximately $280 billion in Russian central bank assets, including securities and cash, primarily through the Belgium-based clearinghouse Euroclear. Additionally, sanctions against prominent Russian individuals have frozen an estimated $58 billion in assets, such as homes, yachts, and private aircraft.

Lammy and Kallas will also discuss an EU proposal that would allow member states to invest €150 billion ($164 billion) in defense hardware, which could be used to purchase weapons from countries like the UK, Norway, and Switzerland. While the UK wouldn’t be required to contribute to the fund, it would benefit from EU states placing orders with British defense firms.

“It’s vital we upgrade our partnership with the EU and work together to bring an end to this war and deliver security for all of our citizens,” Lammy said in a statement.