EU leaders mull using Russian asset profits to arm Ukraine

BRUSSELS (Brussels Morning) – European Union leaders urged to Seize billions in interest from frozen Russian assets for Kyiv.

European union heads of state gathered at a two day summit on Thursday for debate to use billions of euros in profits from frozen Russian financial assets to buy arms and munitions production for Ukraine in an effort to boost Kiev’s fight against Moscow.

In a pre-summit letter to leaders, EU council president, Charles Michel, said “Now that we are facing the biggest security threat since the second world war, it is high time we take radical and concrete steps to be defense-ready and put the EU’s economy on a war footing.”

According to one high official source, these arms will be delivered “within weeks” and “For the last five to 10 years it’s been all about cutting the defense budget. Every year; now that has changed,” the source said. 

No proper decision and strategy would be developed in the two day summit, however, the leaders will suggest how the EU should take action next. 

Two of Ukraine’s  dedicated leaders of Estonia and Lithuania said that it is best to use frozen assets, not just the profit earned. 

“The damage that Russia is causing to Ukraine is much bigger than the value of those assets that we have in Europe. We have to think how we can really achieve this (so) that our taxpayers don’t have to pay for the damage that Russia is causing in Ukraine,” Kaja Kallas, Prime Minister of Estonian said. 

Two Days Summit in Brussels

In this two day summit in Brussels, the EU leaders will also discuss topics such as the war in Gaza, and the aspect of opening membership with talks with Bosnia and farmer’s issues. Though, their main agenda will be Ukraine. President Olodymyr Zelenskiy will also join this two day summit via video link. 

EU Budget and Profits

The 27 nation alliance possesses approximately 210 billion euros, in retaliation for Moscow’s war against Ukraine. Moreover, the bloc set an estimation target of 3 billion euro profit every year. Some countries, notably Hungary, refused to supply weapons to Ukraine. 

Buy Weapons and Munitions

“First and foremost” plan is to buy weapons and explosives for Ukraine, said German Chancellor Olaf Scholz.  Further he added “What is important to me is that we give this use a clear direction now, the direction of acquiring ammunition, for example,”.

When the EU leader asked Scholz what would be the message sent to Vladimir Putin if there’s no settlement to use windfall profits, he replied “I am very sure that we are sending a very clear signal to Putin here. He has miscalculated if he thinks we are not in a position to support Ukraine for as long as is necessary, and the use of the windfall profits is a small but important element.”

Kremlin and Alexander De Croo Statement

On Wednesday in a statement, the Kremlin declared the EU plan as an “unprecedented violation of international law”. However, Belgian Prime Minister Alexander De Croo acknowledged the proposal and said “I think it’s a sensible way of doing it. I think the idea to allocate it predominantly to the purchase of weapons makes total sense”.

EU foreign policy chief Josep Borrell said on Tuesday, “This summer will be critical and Russia is hitting the positions of Ukraine every day in order to weaken them”.