German Chancellor Olaf Scholz says he supports a European Union proposal to use the vast majority of revenues generated from Russian assets frozen in the wake of Russia’s Ukraine invasion to finance arms purchases for the Ukrainian forces.
In remarks made during a visit to the Latvian capital Riga on 6 May, Scholz stated that around 90% of the revenues generated from Russian frozen assets should be spent on arms purchases for Ukraine, Reuters reported.
This endorsement aligns with an earlier proposal from EU foreign policy chief Josep Borrell to divert 90% of interest payments from immobilized Russian assets into an EU-managed fund dedicated to procuring weapons for Ukraine’s defense.
Scholz further emphasized,
“It is important that we also agree that this money can be used for arms purchases not only in the EU, but for purchases worldwide.”
The West has immobilized the equivalent of around 190 billion euros ($204.5 billion) in Russian central bank assets, with some 70% of these funds held by Belgium’s Euroclear securities depository. Tapping into these frozen Russian assets could provide a significant financial boost to Ukraine’s military capabilities as its forces continue to battle the Russian invasion.
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