Ukraine: Borel’s proposal for the purchase of weapons

The head of the European Union’s foreign policy Joseph Borel said today that he will propose that the EU use 90% of the proceeds from Russian assets, frozen in Europe, to buy weapons for Ukraine through the European Peace Fund.

The EU’s top diplomat told reporters in Brussels that he would propose the remaining 10% be transferred to the EU budget to be used to boost the capabilities of Ukraine’s defense industry.

What he had said about Russian assets

He also said that he will present the proposal tomorrow, Wednesday, to EU member states, before the summit of EU leaders that will take place on Thursday and Friday.

A senior EU official said last week that frozen Russian assets in the European Union are likely to generate after-tax profits of 15 billion to 20 billion euros by 2027, depending on the fluctuation of global interest rates.

The submission of the proposal is tomorrow

Around 70% of all Russian assets, frozen in the West, are held at the central Belgian depository Euroclear, which holds the equivalent of 190 billion euros in Russian central bank securities and cash.

Borrell stressed that the proposal is to use the profits from Russian assets in Europe, not the assets themselves. He added that this could bring in about 3 billion euros a year. “The specific proposal will be submitted tomorrow,” he said. “The member states will have to agree to this.”