UK will demand £2.5bn of Abramovich cash to be transferred to Ukraine fund, Starmer says, telling oligarch 'pay up now' or face court
On the use of frozen Russian assets, there is a big breaking news line emerging from the UK, with the British prime minister Keir Starmer formally issuing instructions to transfer £2.5bn from Roman Abramovich’s sale of Chelsea FC to humanitarian causes in Ukraine, telling the billionaire to commit the funds or face court action.
Speaking in the UK House of Commons, Starmer has just said:
“I can announce that we’re issuing a licence to transfer £2.5bn from the sale of Chelsea Football Club that’s been frozen … since 2022.
My message to Abramovich is this: the clock is ticking, honour the commitments that you made, and pay up now.
And if you don’t, we’re prepared to go to court, so every penny reaches those whose lives have been torn apart by Putins illegal war.”
As my colleague Jessica Elgot explains,
“The Russian billionaire sold Chelsea in 2022 under pressure from the British government after the Russian invasion of Ukraine.
Abramovich was granted a licence from the UK government to sell Chelsea as long as the money was spent supporting the victims of the Ukraine war. The proceeds were placed in a UK bank account controlled by Abramovich’s company Fordstam.
Since then, the money has been frozen amid deadlock in negotiations with Abramovich over whether the money should be spent exclusively in Ukraine or whether it can go outside the country as well.”
In a government statement, UK finance minister Rachel Reeves said it was “unacceptable that more than £2.5bn of money owed to the Ukrainian people can be allowed to remain frozen in a UK bank account.”
It’s time for Roman Abramovich to pay up.
UK foreign minister Yvette Cooper said that “this money was promised to Ukraine over three years ago,” and stressed that “it is time Roman Abramovich does the right thing, but if he won’t we will act.”
“That’s why the licence has been issued. It is time this money was used to rebuild the lives of people who’ve seen devastation as a result of Putin’s illegal war.”
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France will 'firmly oppose' EU-Mercosur deal, government spokesperson says
Further to Meloni’s comments earlier (12:37), France is now also doubling down on its longstanding opposition to the Mercosur trade deal, with the French government’s spokesperson saying the French president would “firmly oppose” the agreement.
France keeps demanding robust safeguard clauses, tighter import controls and more stringent standards for Mercosur producers, AFP noted, amid ongoing farmers strikes across the country.
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UK rejoining Erasmus+ 'strong signal in favour of closer cooperation' in higher education, German universities chief says
On Erasmus+ news, we have just got a reaction from the German Rectors’ Conference, an umbrella body for German universities, with its chair, Prof Walter Rosenthal telling the Guardian that the UK’s return was “a strong signal in favour of closer cooperation in European higher education.”
Prof Rosenthal told us in a written statement:
“I very much welcome the fact that this agreement has been reached. Erasmus+ is a flagship European project.
Like no other programme, it offers unique opportunities for intercultural exchange and personal development to particularly young people in Europe.
Students and researchers can immerse themselves in a different academic culture and sharpen their own profile. These are life-changing experiences.
The German and British higher education and research systems will benefit immensely from the United Kingdom’s re-entry into the European mobility programme.”
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'Far from easy' to get EU agreement on frozen Russian assets, Meloni says, as she hints at Mercosur deal delay
Meanwhile, we are getting some important lines out from Rome, where Italian prime minister Giorgia Meloni has been speaking in parliament about current EU affairs.
Meloni told the parliament that Berlin talks were “constructive” and said Russia was making “unreasonable” territorial demands in US-led peace talks on ending the Ukraine war, as she reaffirmed Rome’s support for Kyiv.
But she admitted that finding a legal way to use frozen Russian assets to help finance Ukraine remained “far from easy,” and said the focus shouldn’t be specifically on Belgium, but also other Russian assets more broadly, Corriere della Sera reported.
She suggested Rome was generally in favour on the use of frozen Russian assets, but needed to see strong legal basis for all proposed actions.
Meloni also appeared to back the French call to delay the EU-Mercosur trade deal into early next year, saying it would be “premature” to sign it now as more guarantees were needed for the European agriculture sector.
No deal yet on exempting UK from new import taxes on carbon emissions of goods manufacturers outside EU
Speaking of the EU-UK reset … the EU’s climate commissioner has said there is no deal yet with the UK to exempt it from new import taxes linked to carbon emissions of goods manufactured outside the bloc including the UK.
“We are in very good conversations with our UK friends,” said Wopke Hoekstra at a press conference in Strasbourg on Wednesday on the carbon adjustment border mechanism CBAM.
The UK had hoped a deal could be done by 1 January when the new levies are due to come into force and some believed London’s concession on rejoining Erasmus may have paved the way for a deal removing a Christmas cliff edge for exporters.
Hoekstra played down the significance of the 1 January deadline saying “the price it [the UK] will be paying is actually minimum” because decarbonisation efforts in Britain were well under way as part of political efforts to get to net zero.
The problem between the two sides has arisen because the UK is introducing its own emissions trading system (ETS) in 2027, a year after the EU.
Hoekstra said they hoped to link the two ETS systems, which would also mean exemptions for EU exporters into the UK.
“This is really a matter of doing things in the right order, step by step, chiffre par chiffre, pas à pas. So that means, first we need to conclude – and we stand ready to do that ASAP – to make sure we link the two systems.
“Then, in all likelihood, the conclusion is going to be that we are fully linked. That will have the very, very significant ramifications. And my assessment is that that if the full linkage of the ETS has taken place, that then it is likely that there is nothing in the book-keeping and nothing in terms of the paperwork that still needs to be done,” he said.
Separately, the EU and the UK have announced that they “concluded exploratory talks on the United Kingdom’s participation in the European Union’s internal electricity market, with the details set out in letters to be published in the coming days.”
“The European Commission and the United Kingdom will now work towards negotiating the United Kingdom’s participation in the internal electricity market of the European Union and set out the necessary framework for that participation. Closer cooperation on electricity would bring real benefits to businesses and consumers across Europe, drive up investment in the North Seas and strengthen energy security.”
Erasmus move 'symbolic milestone in reset' between EU, UK, German lawmaker says
German MEP Bernd Lange, chair of the European Parliament’s trade committee, said the UK’s decision to rejoin Erasmus+ was “a symbolic milestone in reset.”
“We must now continue to build on this momentum to promptly launch further concrete measures like SPS [Sanitary and Phytosanitary] or youth mobility,” he said.
Share your views on the UK rejoining the EU Erasmus student exchange programe
We would like to hear from people who may want to participate in the programme from 2027 and those who have taken part in the past.
If you are keen to take part in the scheme, tell us why. For those who took part in the past, how did you find it? Would you recommend it?
Share your views and experience with us.
The last available Erasmus+ country report for the UK based on 2020 data shows that University of Glasgow, University of Bristol, and University of Edinburgh were the three top UK universities sending students abroad, with most people coming into the UK from Spain, France and Germany.
Just over 16,000 European students came into the UK as part of from the scheme in 2019/2020, with almost 6,000 trainees on top of that figure. 9,800 UK students and 6,500 trainees went in the other direction, data show.
We are also getting first reactions from members of the European Parliament.
Sandro Gozi, an Italian politician elected to European Parliament from France, welcomed the agreement on the UK rejoining Erasmus+, saying it was “excellent news”.
“A concrete step to rebuild people-to-people ties,” he said, congratulating the EU and UK negotiators.
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UK to rejoin EU’s Erasmus student exchange programme
Education editor
Young people across the UK will be able to study or gain work experience through the EU’s Erasmus scheme for the first time since Brexit, after the government announced an agreement to rejoin at a cost of £570m.
The scheme officially known as Erasmus+ will be reopened to those involved in education, training, culture and sport from 2027, after discussions in London and Brussels to fulfil a Labour election manifesto pledge.
The UK government said up to 100,000 people of all ages could benefit in the first year, and stressed that Erasmus membership “will create educational and training opportunities for British apprentices, further education students and adult learners, as well as those in higher education”.
David Hughes, chief executive of the Association of Colleges, said the announcement was “brilliant news” for staff and students of all ages in further education colleges.
He added: “For students, it widens their perspective on the world, opening their eyes to different cultures and different ways of life, and for staff, the opportunity to learn from other countries on how they deliver technical education and skills is invaluable.
“I am sure colleges will be delighted that they can offer these opportunities to students and staff.”
For university students, the decision means they will be able to spend up to a year studying at European universities as part of their UK degree courses without paying extra fees, while UK universities will be able to accept European students under the same terms.
Those travelling to Europe under the scheme will be eligible for a grant to help with the costs of living abroad, including those studying at FE colleges or on work placements.
The Erasmus scheme started in 1987 as a university exchange programme but has expanded over the past decade to include work and training placements, as well as funding for school trips and cultural events.
The UK left Erasmus after Brexit, with Boris Johnson claiming the programme did not offer value for money. The government set up a more restricted student travel programme, known as the Turing scheme. No announcement has yet been made about the future of the Turing scheme.
'Big step forward,' EU chiefs say as they welcome UK's decision to rejoin Erasmus
EU trade commissioner Maroš Šefčovič, who was directly involved in the talks, hailed the UK’s move to rejoin Erasmus as a “big step forward” stressing it will “boost people-to-people ties” between the EU and the UK.
European Commission president Ursula von der Leyen also welcomed the decision, saying it will “open the door to new shared experiences and lasting friendships”.
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The official EU-UK “joint statement” on Erasmus is here.
Here is the key bit:
“Following the Summit, the European Commission and the United Kingdom have concluded their negotiations for the UK’s association to Erasmus+ in 2027.
The United Kingdom association to Erasmus+ in 2027 would offer significant opportunities across the education, training, sport and youth sectors for individuals in the United Kingdom and the European Union, particularly for those in the younger generation. The European Commission and the United Kingdom look forward to these opportunities becoming available.
They are pleased that the specific terms of this association, including mutually agreed financial terms, represent a fair balance between the UK’s contributions and the benefits the programme offers and pave the way for United Kingdom participation in the programme in 2027.”
Admittedly, as a former Erasmus exchange student in the UK, I may not be fully objective on this, but allow me to say personally that it just feels right to see the UK back in the scheme.
Exciting times for students on both sides of the English channel.
UK set to rejoin EU's Erasmus scheme in 2027
And we have just had an official confirmation of our reporting overnight that the UK is set to rejoin the European Union’s Erasmus+ programme from 2027.
The UK contribution for the 2027/28 academic year will be £570m pounds ($760m), the British government said, adding that the deal included a 30% discount compared to the default terms under the current trade deal with the EU, Reuters noted.
As Pippa Crerar noted, the breakthrough on Erasmus will help the UK government demonstrate progress in its push to improve relations with the EU, after Keir Starmer declared last month that “we do need to get closer” with the bloc, and with public opinion softening.
US looking at fresh sanctions on Russia's energy sector to push it to negotiate with Ukraine - reports
In the last half an hour Bloomberg News reported that the US is “preparing a fresh round of sanctions on Russia’s energy sector,” as it seeks to put more pressure on the Kremlin to engage with the peace process on Ukraine (£).
Moscow has just responded saying it had not seen the report, and it was still waiting for a debrief with the US after the Berlin talks over the weekend and on Monday.
Who stands where on EU reparations loan for Ukraine?
If you want to test various scenarios ahead of tomorrow’s debate on Russian frozen assets, you can use this handy calculator to see what is needed to get the proposal passed under the so-called qualified majority vote, or QMV (expect to hear a lot about it in the next 48 hours).
As we know, the opposition is led by Belgium and its outspoken prime minister Bart de Wever, with Bulgaria, Czech Republic, and Malta also against. Italy has some doubts too (at least for now?), and Hungary, traditionally, is against anything that would help Ukraine.
Slovakia appears to be leaning towards against too, with prime minister Robert Fico saying this morning that he won’t support anything that prolongs the war and would increase military spending.
Last week Fico said “I will not support anything, even if we have to sit in Brussels until the New Year, which would lead to support for Ukraine’s military expenditures.”
Don’t give them ideas, Robert.
As it stands, that’s not enough to block the proposal (unless France switches sides, essentially) – but that’s assuming the supporters will really push it to the vote. While technically possible, it feels deeply implausible politically.
Let’s see if we get any further political signals from the capitals during the day.
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Morning opening:
EU leaders are entering final stages of negotiations ahead of this week’s crunch European Council meeting in Brussels, at which they will have to decide the critical decision on whether to use frozen Russian assets to fund a reparations loan for Ukraine.
Some 24 hours before they start their talks on Thursday, there is no agreement in sight, as Belgium continues to oppose the European Commission’s proposals as it worries about possible legal challenges from Russia. More worryingly for the countries supporting the loan, more countries seem to be having some doubts, including Italy.
Technically, the European Council could push ahead with a qualified majority vote, even if Belgium and some countries oppose the plan. But politically, the optics of doing that and acting against the will of the most invested member state’s will would be pretty tricky. Either way, it could very easily end up in mess.
The European Commission president, Ursula von der Leyen, has just opened a debate on the summit in the European Parliament, saying “there is no more important act of European defence than supporting Ukraine’s defence,” adding that “the next days will be a crucial step for securing this.”
She outlined both options given to the EU leaders ahead of tomorrow’s summit – the loan or new joint borrowing – but stressed:
“We will have to decide which way we want to take, which route we want to take. But one is one thing is very, very clear. We have to take the decision to fund Ukraine for the next two years in this European Council.”
Prepare for a long Thursday night, everyone.
More broadly, von der Leyen told EU lawmakers that “Europe must be responsible for its own security.”
She added: “This is no longer an option. It is a must.”
Let’s see what they the leaders will do this week, then.
I will bring you all the key updates throughout the day.
It’s Wednesday, 17 December 2025, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
