Kyiv, Dec 7 (AHN) Britain is considering unlocking 8 billion pounds (about $11 billion) of frozen Russian assets as aid to Ukraine, the Ukrainian government-run Ukrinform news agency reported.

According to the report, Britain is working with Canada and some other countries, as well as the European Union (EU), on a deal that could release up to $130 billion for Ukraine, Xinhua news agency reported.

These funds could cover more than two-thirds of Ukraine's financial needs over the next two years -- for defence or for reconstruction if peace is achieved, the report said.

Meanwhile, the Interfax-Ukraine news agency reported that the United States has urged European countries not to support the allocation of a "reparation loan" to Ukraine using Russian assets.

US officials reportedly argued that frozen Russian assets "are necessary to ensure a peace agreement between Kiev and Moscow and should not be used to continue the war," the report said.

Earlier this week, European Commission President Ursula von der Leyen proposed to use 90 billion euros (about $105 billion) of frozen Russian assets to support Ukraine.

However, Belgium has rejected the plan, citing financial and legal risks. A Brussels-based securities depository, Euroclear, holds the bulk of immobilized Russian assets.

EU leaders are expected to vote on the "reparation loan" on December 18-19.

Meanwhile, the UK, together with the European Union and Canada, is working on creating a joint fund that could provide roughly 100 billion pounds ($133 billion) in military financing for Ukraine.