EU closer to buying arms for Ukraine with frozen Russian asset profits
EU proposes using frozen Russian assets profits to provide weapons and financial support for Ukraine.
- Bilawal Riaz
- 1 min read
The European Union is moving forward with a proposal to utilize the profits from frozen Russian assets in Europe to assist in providing weapons and financial support for Ukraine. With approximately €200 billion held in Russian central bank assets, mainly frozen in Belgium, the EU plans to use the interest generated, estimated at around €3 billion annually, for this purpose. The initiative, which has garnered support from most EU foreign ministers, aims to replenish Ukraine’s dwindling munitions stockpile, as other avenues for funding have faced obstacles. The proposed plan includes allocating 90% of the profits to a special fund for member states to procure arms and ammunition, while the remaining 10% would be directed to bolster Ukraine’s defense industry. Though some member countries have objections to supplying weapons to Ukraine, this arrangement would enable them to avoid directly arming the nation. The plan circumvents EU budget restrictions on purchasing arms by utilizing the off-budget European Peace Facility. Despite concerns from the European Central Bank about the impact on the euro currency and EU markets, EU foreign policy chief Josep Borrell assures that only profits, not assets, will be utilized. While some leaders advocate using the windfall profits for Ukraine’s reconstruction, Borrell emphasizes prioritizing prevention of destruction in the first place.