Home News The European Union will present a plan for the use of frozen Russian assets. The reason is the arming of Ukraine

The European Union will present a plan for the use of frozen Russian assets. The reason is the arming of Ukraine

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The European Union will present a plan for the use of frozen Russian assets.  The reason is the arming of Ukraine

The EU’s high representative for foreign and security policy, Josep Borrell, wants to propose to EU member states that 90 percent of the proceeds from Russian assets frozen in the EU be used to buy weapons for Ukraine. This operation could be carried out through the European Peace Facility.

The European Commission is ready to present its plan on Wednesday, on the eve of the summit of 27 EU leaders, which will be partly aimed at supporting Kyiv.

Borrell clarified on Tuesday that the proposal calls for 90 percent of the profit from the assets to go into a fund used to cover the cost of arms for Ukraine.

The remaining 10 percent would go to the EU budget to help increase the capacity of Ukraine’s defense industry.

“If the member states agree, it will be about three billion euros a year that we can get from the revenue from the frozen assets,” explained Borrell.

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After Russia attacked neighboring Ukraine in February 2022, the EU froze around 200 billion euros of Russian central bank assets. Approximately 90 percent of these funds are managed by the international depository organization Euroclear, based in Belgium.

AFP recalled that EU member states have been arguing for months about what to do with Russian assets. Some countries from the Eurobloc and other Western allies propose to use this entire amount to pay for the post-war reconstruction of Ukraine.

But countries such as Germany are hesitant to manipulate funds frozen in the EU, fearing that such a move would undermine investor confidence in European markets.

However, Borrell argues that the proposal he submitted was consulted with the European Central Bank. He pointed out that it is high time for the member states to take a decision on this matter, because the war in Ukraine is entering a decisive phase.

“The summer will be critical,” he warned. “Russia is attacking Ukrainian positions every day to weaken them, and come spring and summer, we will definitely see increased military activity,” Borrell added.

These proposals from the EU appear in a situation where Republicans in the US Congress continue to block a 60 billion dollar aid package for Ukraine, AFP added.

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