EU proposes using frozen Russian assets to buy US weapons for Ukraine - FT
Kyiv • UNN
The EU has proposed using part of a €140 billion loan, backed by frozen Russian assets, to purchase American weapons for Ukraine. This is on condition that Washington continues to support Kyiv in its defense against Moscow.
The EU has proposed using part of a proposed €140 billion loan, secured by frozen Russian assets, to purchase American weapons for Ukraine, provided that Washington continues to support Kyiv in its defense against Moscow, the Financial Times reports, writes UNN.
Details
"The proposal, made to EU ambassadors on Friday, came as European allies were stunned by US President Donald Trump's agreement to meet his Russian counterpart in Hungary to try to end the war in Ukraine," the newspaper writes.
The European Commission plans to use Russian central bank assets frozen in the Belgian central securities depository Euroclear in response to the war to finance a "reparations loan" for Ukraine worth €140 billion.
Most of this loan will be directed to the purchase of weapons, according to a European Commission document detailing the loan structure, which was reviewed by the Financial Times, as well as to support the defense industry of Ukraine and Europe.
Although a preference for European weapons was introduced at France's request, the European Commission added that "cooperation... with international partners who commit to providing substantial additional support to Ukraine can be foreseen."
EU diplomats and officials said that "this proposal aims to use large arms procurement contracts to keep the US on its side." In recent months, Trump has changed his position, allowing the sale of more American weapons to Ukraine, provided that Europe and other allies pay for them.
The European Commission also called on G7 allies and other countries to "step up support for Ukraine alongside the EU."
This could include replicating the EU's "reparations loan" by mobilizing assets frozen in their jurisdictions - something the UK and Canada have stated their willingness to do - as well as "providing additional support."