EU suggests using 90% of frozen Russian asset revenues for Ukraine arms

March 20,2024 335
EU suggests using 90% of frozen Russian asset revenues for Ukraine arms

Josep Borrell, High Representative of the European Union for Foreign Affairs and Security Policy, has proposed using 90% of the revenues from frozen Russian assets abroad to purchase weapons for Ukraine, Reuters reported.

Borrell told reporters in Brussels he would submit a formal proposal to the EU’s 27 member governments on Wednesday, ahead of a summit of the bloc’s leaders on Thursday and Friday,” the text said.

The procurement of weapons for the Armed Forces of Ukraine from Russian asset revenues is planned through the European Peace Facility. Borrell considers it appropriate to transfer the other 10% to the EU budget to enhance the capacity of the Ukrainian defense industry.

If we do that, well, the Russians will not be very happy. The amount of money – three billion (euros) per year – is not even extraordinary. But it is not negligible,” said Borrell, emphasizing that it concerns the use of profits from frozen assets, not the assets themselves.

Likely, the decision will not be made on March 20, but the proposal will initiate discussions on the matter, said a high-ranking EU official.

The majority, 70%, of all frozen Russian assets in the West are held in the Belgian central securities depository Euroclear. This includes resources worth 190 billion EUR – various securities and cash from the Russian central bank.

Last week, Borrell stated that these assets could generate profits of 15 to 20 billion EUR after-tax payments by 2027, depending on global interest rates.

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