EU plans to utilize frozen Russian assets to arm Ukraine
German Chancellor Olaf Scholz announces EU's intention to utilize 'windfall profits' from frozen Russian assets to procure weapons for Ukraine, emphasizing the urgency in providing essential defense resources amidst Russia's military aggression
German Chancellor Olaf Scholz announced Thursday that the European Union intends to utilize "windfall profits" from frozen Russian assets to procure weapons for Ukraine.
Ukraine is set to receive financial assistance from the profits of the Central Bank of the Russian Federation, as proposed by the European Union. The proposal entails the implementation of a tax on income generated from immobilized reserves to direct approximately 3 billion euros ($3.25 billion) annually to support Ukraine's interests.
Speaking ahead of a summit of European leaders in Brussels, Scholz emphasized the EU's commitment to bolstering Ukraine's defense capabilities.
German Chancellor Olaf Scholz said he will push for windfall profits for Ukraine's military needs in his talks with European allies.
"These are the profits which are not entitled to anyone and, therefore, can be used by the European Union," Scholz stated, highlighting the consensus among EU members regarding the allocation of these funds.
He stressed the urgency of providing Ukraine with the necessary weaponry and ammunition to counter Russia's military aggression.
"Germany is way ahead on this," Scholz noted, citing the 28 billion euros ($30.5 billion) worth of weapons already delivered and earmarked for Ukraine.
However, he called for all European states to contribute significantly to the effort.
The EU's decision comes amid stalled U.S. support for Ukraine and a shortfall in EU commitments, including missing a target to provide a million artillery shells.
European Council President Charles Michel emphasized the critical juncture and urged swift and resolute action.
The proposal to repurpose Russian assets has been under consideration since the 2022 invasion but encountered legal hurdles.
The United States has urged G-7 allies to explore avenues to unlock the value of sanctioned Russian funds.
British Foreign Secretary David Cameron proposed leveraging Russian assets as collateral to provide loans to Ukraine.
While initially discussed for recovery and reconstruction purposes, the focus has shifted toward military support.
European Commission president Ursula von der Leyen spoke in favor of the change in priorities, saying there could be “no greater use for that money than to make Ukraine and all of Europe a safer place to live.”
The European leaders' summit coincides with growing concerns in Kyiv regarding the sustainability of U.S. military aid, particularly amid an election year in the United States.
Ukrainian President Volodymyr Zelenskyy has appealed to European allies for increased support.
He cited critical shortages of ammunition, particularly artillery shells, within the Ukrainian army.
Source: Newsroom
