Berlin, Germany – European Commission President Ursula von der Leyen proposed using windfall profits from frozen Russian assets to purchase weapons for Ukraine amidst ongoing discussions among European allies regarding continued support for the war-torn country. The proposal, which involves approximately €300bn in Russian sovereign assets frozen by G7 allies in response to Moscow’s invasion of Ukraine two years ago, aims to enhance security in Europe.
Von der Leyen’s suggestion marks a significant step for the European Union, linking the use of frozen Russian assets to potential weapons procurement at a time when disagreements among western allies persist over financial and military assistance for Ukraine. While French President Emmanuel Macron mentioned the possibility of deploying western troops to Ukraine, Berlin instead advocated for supplying more weapons to Kyiv.
The proposal will require unanimous approval from the EU’s member states, with previous discussions focusing on channeling the proceeds into the EU budget for Ukraine’s reconstruction. However, the process of using the funds for weapons could involve different mechanisms, such as the European Peace Facility or other EU channels used to purchase ammunition directly from manufacturers.
Discussions over an EU fund to reimburse governments supplying weapons to Ukraine remain gridlocked due to disagreements over the facility’s rules. Additionally, EU countries are seeking to raise €1.5bn to purchase foreign-made weapons for Ukraine under a Czech Republic-led plan. Amidst concerns from Ukraine about dwindling ammunition supplies, the need for long-range weapons to target Russia’s military logistics is critical.
The European Union’s focus on utilizing profits from Russian assets to support Ukraine has been met with caution from countries like France, Germany, and Italy. Von der Leyen’s emphasis on defense as a core component of her re-election campaign underscores the urgency of addressing security concerns in Europe. As discussions continue, the EU faces challenges in navigating legal, political, and economic implications while striving to provide effective support to Ukraine amidst ongoing conflict.