Borrell wants to use 90% of Russian assets profits to buy arms for Ukraine
Josep Borrell, the EU's top diplomat, said he would propose to use 90% of the revenue generated by frozen Russian assets to purchase weapons for Ukraine via the European Peace Facility (EPF) fund, Radio Free Europe/Radio Liberty (RFE/RL) reported on March 19.
The remaining 10% would be allocated to the EU's budget to boost Ukraine's defense industry's capacities, Borrell told reporters in Brussels. The official said he would submit the proposal to member states on March 20, ahead of a summit starting the next day.
EU leaders recently agreed to launch a 5-billion-euro ($5.4 billion) defense fund for Ukraine within the framework of the EPF, the bloc's chief tool for financing Kyiv's military needs.
The $5.4-billion top-up has been long delayed by debates among the member states on how to best use the funds. Concurrently, European leaders have been leading discussions on what to do with billions in Russian assets frozen in EU accounts.
Ukraine's Western partners and other allies froze around $300 billion in Russian assets at the start of the full-scale invasion in 2022, with roughly two-thirds held at the Belgium-based financial services company Euroclear.
Bloomberg reported earlier on March 19 that Brussels had drafted a proposal that would allocate an estimated 3 billion ($3.3 billion) of profits generated by frozen assets per year for supporting Ukraine's defense industry and purchasing arms for the besieged country.
The proposal, which has to be approved by all member states, is expected to be discussed during the summit on March 21.
Assistance from Europe is ever more crucial now as U.S. aid has been effectively blocked for months due to internal political disputes, putting a heavy strain on Ukraine's defense efforts.
The Kyiv Independent news desk
