The head of the EU foreign policy department, Josep Borrell, will propose that the European Union use 90% of the proceeds from Russian assets frozen in Europe to purchase military equipment for Ukraine through the European Peace Fund.
— A concrete proposal will be presented tomorrow. This must be agreed upon by Member States, — he said.
Use of frozen assets of the Russian Federation
Borrell proposes to allocate the remaining 10% to the EU budget in order to use it to increase the potential of the defense industry of Ukraine.
It is noted that Russian assets frozen in the EU are likely to generate between €15 billion and €20 billion in after-tax profits until 2027, depending on global interest rates.
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About 70% of all Russian assets immobilized in the West are located in the Belgian central securities depository Euroclear. They hold the equivalent of €190 billion worth of various securities and Russian central bank funds.
As Borrell clarifies, the proposal was to use the profits from assets located in Europe, and not the assets themselves. According to him, this could bring in about €3 billion a year.
