Much of the profits from storing frozen Russian central bank funds in the EU could be used to buy weapons for Ukraine in the future.
Ursula von der Leyen's EU Commission and EU Foreign Affairs Representative Joseph Borrell formally sent a proposal to member state governments today. According to EU data, 97 percent of the proceeds will be used for Ukraine in the future.
The Custodian Fund shall retain the remaining three percent for its expenses. Overall, it is estimated that 2.5 to 3 billion euros of extraordinary income will be generated this year alone.
Borrell had already announced yesterday that 90 percent of the profits, which could be used to finance military equipment and training, should be included in EU funds.
Support is unclear
The remaining ten percent will be added to the EU budget and used to strengthen the defense sector in Ukraine itself. The precondition, however, is that member states agree to his proposal, the Spaniard said.
Diplomats said it was not yet clear whether all member states would support the move. This is due, among other things, to concerns about potential lawsuits from Russia and a loss of confidence among investors.
Warning from Russia
Russia strongly warned the EU against arming Ukraine with frozen Russian assets. Kremlin spokesman Dmitry Peskov has threatened EU countries with criminal prosecutions for decades.
Russian Foreign Ministry spokeswoman Maria Zakharova spoke of “robbery and theft” and an “unprecedented violation” of international law.
