Proceeds from the RF assets should be used for weapons for Ukraine

90% of the proceeds from the assets of the Russian Federation should go to the European Peace Fund for the purchase of weapons and ammunition for Ukraine, and another 10% of these profits should be added to the EU budget to finance Ukraine's reconstruction programs.

EU High Representative Josep Borrell said this in Strasbourg during a plenary hearing on how to deal with the "frozen" assets of the Russian Federation, the correspondent of Ukrinform reports.

"We can use these revenues and place them, 90% - for the European Peace Fund, another 10% - for the EU budget. This initiative concerns only the use of revenues generated from frozen Russian assets. It is not about assets per se, not about capital itself, but about income from such capital. Probably, over time, other measures can be implemented that will be justified from a legal point of view," Borrell said.

He reminded that the assets of the Russian Central Bank, which were blocked in the EU after the start of the full-scale invasion of Ukraine, are currently managed by the Central Securities Depositories and bring extraordinary profits due to accrued interest. EU countries have agreed on a step-by-step way to use these extraordinary profits, the total amount of which is estimated at around 3 billion euros per year. In order to use them in the interests of Ukraine, according to the high representative, the EU countries had to look for innovative legal approaches.

The first step, which the European Council agreed to in February, instructed the Central Depositories to hold these additional revenues in separate accounts, keep records, and calculate them separately since these revenues do not belong to Russia's sovereign assets.

Now the EU is taking the second step. According to the proposal of the high representative of the EU, the member states should agree to direct 90% of these extraordinary revenues to the urgent needs of the defense of Ukraine, to its support through the European Peace Fund.

"I want to emphasize that Ukraine urgently requires weapons and ammunition for self-defense and to protect its people from Russian aggression, from Russian missiles, drones, guided bombs, and constant attacks. From the beginning, we envisioned the use of these revenues to support the recovery and reconstruction of Ukraine. But I believe that before thinking about reconstruction, we should first think about how to avoid destruction," Borrell said.

He noted that in the Donetsk region, which is partially occupied, during offensive operations, Russian troops erased entire cities from the map; currently, more than 100,000 residential buildings have already been destroyed in Ukraine. Directing 90% of proceeds from Russian assets to weapons and ammunition for Ukraine will help prevent its further destruction by Russian invaders.

"This proposal comes from the European Commission and me. This decision must be adopted by the Council of the EU, after which it can be applied. The EU Council is discussing it right now. I hope this will be a quick discussion. We need these resources in order to continue supporting Ukraine at a crucial moment," the high EU representative emphasized.

Good words, Mr. Borrell, it’s a pity that you personally don’t decide anything.

Author - Serhii Kolomiets, 24/04/2024