Brussels will propose that EU countries use the proceeds from frozen Russian assets, estimated at 3 billion euros a year, to help arm Ukraine, the bloc's foreign policy chief said, AFP reports.
The European Commission will present its plan to member states on March 20, ahead of a summit of 27 EU leaders that will be partly devoted to support for Kiev.
Foreign policy chief Josep Borrell said the proposal would see 90% of profits made from the assets go into a fund used to cover the cost of arms for Ukraine.
The remaining 10% would go into the EU budget to be used to help increase the capacity of Ukraine's own defence industry.
"If member states agree, that would be about €3 billion a year that we can get from the proceeds of the frozen assets," Borrell said.
The EU's drive to find more money for Ukraine comes at a time when a $60 billion aid package from Kiev's other big backer, the United States, remains stalled in Congress.
A reduction in arms supplies two years after the war began has left Ukrainian forces outnumbered on the front line and struggling to halt Russia's advance.
The EU froze about 200 billion euros of Russian central bank assets held in the bloc as punishment after Moscow invaded its neighbor in February 2022.
About 90% of those funds are held by Euroclear, the Belgium-based international depository organization.
EU countries have been arguing for months over what to do with the Russian assets, amid calls from some member states and other Western allies to go further and seize the entire sum to pay for Ukraine's reconstruction.
Countries such as Germany are hesitant to reach into the EU's frozen funds for fear that it will undermine investor confidence in European markets.
Borrell said the European Central Bank had been consulted on the proposal and that now was the time for member states to make a decision as the war in Ukraine enters a crucial stage.
"The summer will be decisive. Russia is striking Ukraine's positions every day to weaken them, and when spring and summer come, we will certainly see increased military activity," he said. / BGNES
