Europe wants to purchase weapons for Ukraine using profits from confiscated Russian funds

The European Commission aims to expedite the transfer of profits obtained from frozen Russian assets to Ukraine and redirect them towards the purchase of weapons, rather than post-war reconstruction. Financial Times reports this, citing an unpublished draft resolution.

If the resolution is approved in the near future, the first tranche could be allocated as early as July. A total of 2-3 billion euros may be allocated this year and up to 20 billion by 2027. EC President Ursula von der Leyen has called for the funds to be directed towards military support, which may face resistance from several countries, notably Hungary.

Brussels proposes allocating 97% of the net profits from frozen Russian assets in the Euroclear investment fund and transferring them to the EU budget. The money will then be disbursed quarterly or semi-annually and “can be used for the benefit of Ukraine according to various agreements.” The EU plan will not have retroactive effect and almost 4 billion euros of accumulated profits will remain with Euroclear. This will be mainly to cover legal costs resulting from litigation with Russia, which inundated the fund with lawsuits.