The time to mobilize frozen Russian financial assets in Europe, some 3 billion euros annually, to arm Ukraine is approaching. Although the initial idea was to dedicate these profits to the reconstruction of the country, what Kyiv has been saying to the EU for some time has been taken into account: “Do not send me electric generators because they will be destroyed, send me weapons”, as the president announced of the European Commission, Ursula von der Leyen, before the European Parliament and was reaffirmed a few days ago by Chancellor Olaf Scholz.
The EU’s High Representative for Foreign and Security Policy, Josep Borrell, will propose tomorrow to the Council to transfer 90% of the returns from these funds to the European Peace Mechanism so that they can be used to purchase weapons and ammunition for the benefit of Kyiv; The EU budget cannot be used to acquire weapons but this instrument is supported by national contributions, which is why the EU External Action Service (EEAS) proposes channeling it through this route, considered the most expeditious to deliver military aid to Kyiv. Under this plan, 10% of the remaining money will go to the European Commission budget and can be dedicated to other activities.
“I hope that the European leaders make a decision and send a clear message” about their determination to help Ukraine, Borrell explained in a meeting with journalists at the EEAS headquarters while their services put the final touches on the documents that will be debated tomorrow. ambassadors of the Twenty-Seven and, on Thursday, the heads of State and Government of the EU at the summit they plan to hold in Brussels. The proposal requires the unanimity of the Twenty-Seven and just yesterday Borrell admitted after discussing the issue at the meeting of European Foreign Ministers that there is still no total consensus between the Governments.
“My response [to these doubts] is to stop talking about hypotheses and start talking about concrete proposals,” says Borrell. Bookings are expected from countries such as Ireland, Austria and Slovakia but especially Hungary. Getting the agreement of the Magyar Prime Minister, Viktor Orbán, who has put a damper on all the decisions taken to date by the EU to help Ukraine defend itself from the Russian invasion, will not be easy. The proposal is supported by the European Peace Fund, where the rule already applies that capitals place limitations on the use made of their national contributions, which will allow Budapest to reaffirm its decision not to arm Kyiv.
Although the United States maintains pressure for the EU, where most of the Russian assets frozen as a result of the invasion of Ukraine are located, to go one step further and directly confiscate that money, some 191 billion euros, the Twenty-seven They will reaffirm that there is no legal basis for this and will advance the plan launched in February, with the decision to legally separate the benefits generated by these funds. Appropriating the funds “is not on the agenda.” The imminent proposal has been “fully” consulted with the European Central Bank, the high representative added.
