France Clashes with UK Over Seizing $350B in Frozen Russian Assets for Ukraine

Tensions between France and the United Kingdom have intensified over the prospect of seizing $350 billion in frozen Russian assets to fund military aid for Ukraine, particularly by directing the funds to the U.S. defense industry according to the Guardian on March 4.

The United Kingdom has long supported the idea, with Foreign Secretary David Lammy recently endorsing the move. Ukrainian President Volodymyr Zelenskyy has also backed the proposal. However, French President Emmanuel Macron remains opposed, aligning with the European Central Bank and Germany in warning that seizing sovereign assets could violate international law and deter investment in the eurozone from countries such as Saudi Arabia and China.

Speaking alongside U.S. President Donald Trump last week, Macron reiterated his stance. “We have $250 billion in frozen Russian assets in Europe, but this does not belong to us, so they are frozen. If at the end of the day in the negotiation we would have with Russia, they are ready to give it to us, super,” he said.

Macron has argued that Europe must reduce its dependence on U.S. military aid and has been frustrated that since the start of the war, only 22 percent of European military purchases have been from within the EU, with most acquisitions coming from American manufacturers. He remains reluctant to see frozen Russian funds funneled into the U.S. defense sector rather than strengthening Europe’s own defense industry.

Within the European Union, the Czech Republic, Estonia, and Poland have been among the strongest advocates for outright seizing Russian assets, rather than relying on the interest they generate to secure loans for Ukraine.

The debate over the legality and practicality of seizing Russian assets has persisted in the UK and Europe for nearly two years. The discussion gained momentum last week when former UK Prime Minister Rishi Sunak argued in The Economist that the legal barriers to asset seizure could be overcome.

Estimates suggest that roughly $240 billion of Russian frozen assets are held in the EU, with $28 billion to $30 billion in the UK and the remainder in other jurisdictions.

Former UK National Security Adviser Lord Ricketts has proposed that France and the UK could resolve tensions by channeling the assets directly to Ukraine.

Earlier, the U.S. reportedly suspended military aid to Ukraine, marking the first such disruption since the start of Russia’s full-scale invasion.