EU Considers Channeling Russian Frozen Asset Revenues to Support Ukraine

Written by Henrik Rothen

Mar.19 - 2024 2:31 PM CET

Photo: Wiki Commons
Photo: Wiki Commons
Josep Borrell announces that there will be a proposal for 90% of revenues generated from Russian frozen assets in Europe to be used to purchase weapons for Ukraine.

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Josep Borrell, the European Union's High Representative for Foreign Affairs and Security Policy, announced plans to propose the allocation of 90% of revenues generated from Russian frozen assets in Europe towards purchasing weapons for Ukraine. This initiative, set to be presented through the European Peace Facility, underscores the EU's commitment to supporting Ukraine during these tumultuous times.

Speaking to reporters in Brussels, Borrell revealed his intention to suggest that the remaining 10% of these revenues be directed to the EU budget, with the purpose of enhancing the Ukrainian defense industry's potential.

This strategic proposal is scheduled for discussion among EU member states on Wednesday, just before the EU leaders' summit slated for Thursday and Friday.

Recent estimates by a senior EU official indicated that Russian assets frozen within the European Union could yield between 15 billion to 20 billion euros in after-tax profits by 2027, contingent on global interest rates. A significant portion of these immobilized Russian assets, approximately 70%, are located in the Belgian Central Securities Depository Euroclear, holding an equivalent of €190 billion in various securities and cash belonging to the Russian central bank.

Borrell emphasized that the proposal focuses on utilizing the profits from these assets rather than the assets themselves, a strategy that could potentially generate around €3 billion annually.

"The concrete proposal will be tabled tomorrow. This is for member states to agree," Borrell stated, highlighting the need for consensus among EU nations on this critical matter.

As the EU deliberates on this proposal, the potential reallocation of funds from Russian frozen assets to support Ukraine's defense efforts marks a significant step in the international response to the conflict, demonstrating the EU's proactive stance in seeking solutions that contribute to Ukraine's resilience and security.

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