BRUSSELS (AP) – The European Union plans to use profits from billions of euros of Russian assets frozen in Europe to provide arms and other financing to Ukraine, a senior official says. revealed on Tuesday.
EU foreign policy chief Josep Borrell said this week that the plan had been given the green light by most of the region’s foreign ministers and hoped that EU leaders would back it at a summit that starts in Brussels on Thursday. ing. The move comes as Ukraine is dangerously short on munitions and U.S. efforts to get new funding for weapons stall in Congress.
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The 27-nation EU holds about 200 billion euros ($217 billion) in Russian central bank assets, much of which is frozen in Belgium in retaliation for Russia’s war with Ukraine. The member states estimate that they will earn about 3 billion euros (about 330 billion yen) in interest on the funds each year.
“The Russians will not be very happy. Three billion a year is not something special, but it is not negligible,” Borrell told reporters.
A few member states, particularly Hungary, have refused to supply arms to Ukraine, so these windfall profits will be shared. About 90% of the money will go into a special fund that many EU countries are already using to receive refunds for the arms and ammunition they send.
The remaining 10% will be included in the EU budget and will support Ukraine’s defense industry. Borrell said countries that object to sending arms could argue that they are not providing them with weapons.
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According to the current expert interpretation of EU countries’ treaties, the EU budget cannot be used to purchase weapons, but a special fund known as the European Peace Establishment operates beyond the budget and respects the same legal standards. do not have to. or be approved by the European Parliament.
The European Central Bank (ECB) has warned in the past that seizures of Russian assets could undermine confidence in the euro currency and EU markets. But Borrell said the assets would not be taken away, only the windfall profits made. He added that the plan had been discussed with the ECB.
Some EU leaders, including Belgian Prime Minister Alexander de Croo, have said they want to use the windfall to help rebuild Ukraine, but Borrell said he wanted to “do what’s best” in the first place. “I believe that nothing is destroyed,” he said. place.
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