EU describes work on plan to use proceeds of frozen Russian assets

At a summit in Brussels on Thursday, EU leaders agreed to "continue working" on a plan to use the profits from the frozen assets of the Russian Central Bank for Ukraine's military needs. The first €1 billion could be allocated for the purchase of weapons for Ukraine by 1 July.

Source: Voice of America

Details: The proposal, which has been the subject of negotiations between EU leaders in Brussels, could reportedly free up about €3 billion (US$3.3 billion) a year for Kyiv – once all EU member states agree.

"We are glad that the leaders supported our proposal to use... the proceeds of frozen Russian assets. This will provide funding for Ukraine's armaments," European Commission President Ursula von der Leyen said.

The EU has frozen about €200 billion of assets of the Central Bank of Russia as part of sanctions imposed on Moscow over its full-scale invasion of Ukraine in February 2022.

Most of the funds are held by Euroclear, the Belgian-based international securities depository.

EU countries have been arguing for months over what to do with the assets, and EU chief diplomat Josep Borrell came up with a plan on Wednesday to redirect the profits earned on the funds to arm Ukraine.

This plan allows for 90% of the proceeds from the frozen Russian assets to go to a fund used to cover the cost of weapons for Ukraine.

The remaining 10% will be transferred to the EU budget, where it will be used to help increase the capacity of Ukraine's own defence industry.

The EU's attempts to find additional funds for Ukraine come as a US$60 billion support package from the US, another Kyiv ally, remains blocked in Congress.

EU officials insist that the plan is legally sound, as the profits were earned by securities depositories as a result of the sanctions and do not belong to Russia.

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