It comes as the foreign minister is set to address a conference on rebuilding Ukraine in Lugano, Switzerland, on Monday, which will be attended either in person or virtually by most of Ukraine’s senior political leadership. It is estimated that more than 120,000 homes in Ukraine have been destroyed during the Russian invasion, creating the need for billions in income to restore the country economically and become an economy with Europe. Truss told MPs last week that she supports the idea that the government could seize frozen Russian assets in the UK and redistribute them to victims of Russia’s war in Ukraine. He said: “I support the idea. We are looking into it very carefully. In fact, Canadians have just passed legislation. This is an issue that we are working on jointly with the Department of the Interior and the Department of Finance, but I certainly agree with the idea. We just need to get its specifics right.” He said the initiative would “likely” need legislation, but not necessarily. Seized funds could be provided either to private individuals in the form of compensation or to the Ukrainian state. Currently, the UK can freeze Russian assets under the Financial Crimes Act for 56 days and defer the freeze for another 56 days. During this period the owner of the asset cannot benefit from the asset in any way. In her speech at the conference, Truss will claim that the UK will position itself as Ukraine’s key partner in the recovery process and will claim that it has already provided $1.5bn to the country through multilateral loan guarantees and more than £100m in bilateral support. He will say: “Ukraine’s recovery from Russia’s war of aggression will be a symbol of the power of democracy over autocracy. We will see [Vladimir] Putin that his efforts to destroy Ukraine have only created a stronger, more prosperous and more united nation. “The UK is resolute in its support for Ukraine’s territorial integrity and will stand by Ukraine as it emerges as a strong, prosperous and innovative democracy. We have led in supporting Ukraine during the war and will continue to lead in supporting the Ukrainian government’s reconstruction and development plan.” The Foreign Office said: “Humanitarian aid and demining programs will help rebuild villages, towns and cities and in the longer term the UK will share economic and financial expertise to turn Ukraine into a global hub for investment, business and cutting edge. technology. The UK will support the recovery of Kyiv city and Kyiv region at the request of President Volodymyr Zelenskiy.’ Subscribe to First Edition, our free daily newsletter – every morning at 7am. BST In practice, the scale of reconstruction will depend on the outcome and duration of the war, and whether eastern Ukraine – where the worst destruction occurred – is returned to Kyiv or remains in Russian hands. About 6.4 million Ukrainians are estimated to have fled the country, while another 6 to 7 million citizens have fled their homes and moved to western parts of Ukraine. The cost of the war is estimated at $1 trillion if it lasts until the end of the year. The International Monetary Fund estimated that Ukraine’s balance of payments gap through June would be around 14.3 billion euros ($15 billion). One of the goals of the conference will be to outline a vision of a Ukrainian economy connected to Europe, providing specialties in the fields of agriculture, renewable energy and technology. One of the most sensitive issues will be a de-oligarchy program and how to establish strong anti-corruption institutions at a time when large flows of money from the US and Europe are likely.
