Russian frozen assets: Borrell will offer to allocate 90% of revenues to weapons for Ukraine

Josep Borrell, EU High Representative for Foreign Affairs and Security Policy. Photo: Getty Images

Josep Borrell, EU High Representative for Foreign Affairs and Security Policy, said on Tuesday that he will offer the EU to use 90% of the revenues from Russian frozen assets in Europe to purchase weapons for Ukraine through the European Peace Facility.

Source: Josep Borrell, as quoted by Reuters; European Pravda

The EU’s top diplomat told reporters in Brussels that he would propose transferring the remaining 10% to the EU budget so that they could be used to strengthen the potential of the Ukrainian defence industry.

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Borrell said he would submit the proposal to EU member states on Wednesday, ahead of the EU leaders’ summit on Thursday and Friday.

Last week, a senior EU official said Russian assets frozen in the European Union could generate anywhere from 15 billion to 20 billion euros in after-tax profits by 2027, depending on global interest rates.

About 70% of all Russian assets immobilised in the West are held in the Belgian Central Securities Depository Euroclear, which has the equivalent of €190 billion in various securities and cash of the Russian central bank.

Borrell stressed that the proposal is to use profits from assets held in Europe, not the assets themselves. According to Borrell, this can bring about €3 billion annually.

“The concrete proposal will be tabled tomorrow. This is for member states to agree,” Borrell said. 

Background: 

• Earlier, Bloomberg reported that the EU has prepared a legislative proposal, according to which Ukraine will start making a profit from frozen Russian sovereign assets as early as July.
• Polish Foreign Minister Radosław Sikorski said it would be better if Russian money in the EU was used to defend Ukraine rather than to rebuild it.

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