Belgium supports EU plan to use proceeds from frozen Russian assets to buy weapons for Ukraine

Belgian Prime Minister Alexandre De Kroo on Thursday welcomed the European Union's proposal to use billions of euros in profits from frozen Russian assets to buy weapons for Ukraine ahead of a summit where EU leaders will discuss the plan. He said this in an interview with Reuters, UNN reports.

It's a good proposal. 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

The 27 EU leaders will discuss the proposal at a summit on Thursday. De Kroo said that so far he has heard "only positive comments" from other leaders on the proposal.

Addendum

The European Commission, the EU's executive body, this week proposed taking the profits - estimated at €2.5-3.0 billion a year - from Russian assets frozen in Europe after Moscow's invasion of Ukraine and transferring about 90% to Ukraine.

The assets are frozen by the EU's central securities depositories, mainly the Belgian Euroclear.

According to the European Commission's proposal, 90% of the profits will be used through the European Peace Fund to purchase weapons for Ukraine. The rest will be used for recovery and reconstruction.

Ukraine, the publication writes, will also receive a tax levied by the Belgian government on profits. In 2024, this amount is expected to be €1.7 billion, of which €1.5 billion will be paid this year.

Thus, the total financial contribution to Ukraine from frozen Russian assets in the EU could reportedly amount to around €4.0-4.5 billion this year.

Russia said on Wednesday that the European Commission's plan is "banditry and theft" and will lead to decades of litigation.