Borrell: EU Eyes Using Russian Asset for Ukrainian Support

Written by Camilla Jessen

Mar.20 - 2024 10:09 AM CET

Photo: Alexandros Michailidis / Shutterstock.com
Photo: Alexandros Michailidis / Shutterstock.com
Josep Borrell has proposed directing revenues from frozen Russian assets in Europe to bolster Ukraine.

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Josep Borrell, the EU's High Representative for Foreign Affairs, proposed on Wednesday that EU member states utilize the unexpected revenues from immobilized Russian assets in Europe to support Ukraine.

Borrell shared this proposal on his X (Twitter) account.

He explained that his proposal involves allocating 90% of these funds through the European Peace Facility and 10% through the EU budget.

"I look forward to a rapid adoption by the Council. This will demonstrate the EU unity and commitment to support Ukraine and its people," Josep Borrell wrote.

The strategy focuses on using profits from the assets held in Europe, rather than the assets themselves. This approach is expected to generate approximately 3 billion euros annually.

A senior EU official mentioned last week that Russian assets frozen in the European Union could yield between €15 billion and €20 billion in after-tax profits by 2027, depending on global interest rates.

Approximately 70% of all Russian assets immobilized in the West are under the custody of Euroclear, a Belgian central securities depository. Euroclear holds the equivalent of 190 billion euros in various securities and cash belonging to the Russian central bank.

Radoslaw Sikorski, the Polish Foreign Minister, previously stated that it would be preferable for the frozen Russian funds in the EU to be directed towards Ukraine's defense rather than its reconstruction.

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