On 18 March, EU foreign policy chief Josep Borrell proposed that the European Union should transfer 90% of revenues from Russian assets frozen in Europe to an EU-run fund that finances weapons for Ukraine.
Borrell has put forward a proposal to finance military aid for Ukraine, revealing plans to transfer 90% of the revenues generated from Russian assets frozen in Europe to the European Peace Facility, an EU fund that provides weapons to countries outside the bloc.
Borrell announced in Brussels that he would present a formal proposal to the EU’s 27 member governments on 20 March, ahead of a summit of the bloc’s leaders scheduled for 21 and 22 March, according to Reuters.
Borrell acknowledged that “the Russians will not be very happy” with this move, but argued the substantial sums involved, potentially 3 billion euros per year, cannot be ignored. A significant portion of immobilized Russian assets, worth around 190 billion euros, is held by Belgium’s Euroclear securities depository.
While most of the funds would go towards supplying Ukraine with weapons, Borrell proposed allocating the remaining 10% to boost the defense capabilities of Ukrainian industries through the EU’s central budget.
This proposal comes as Ukraine’s forces face ammunition shortages in their efforts to repel Russia’s invasion, with a major US military aid package stalled in Congress.
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