EU Hopes Frozen Russian Assets Can Be Used to Buy Ukrainian Arms from July

The European Union meeting discussed aid for Ukraine. (Twitter/@CharlesMichel)

JAKARTA - The European Union could use funds from frozen Russian assets to help Ukraine within months under a plan that includes arms purchases for Kyiv, EU leaders said on Thursday.

Leaders of the bloc's 27 member states agreed at a summit in Brussels, Belgium to continue work on the plan, presented this week by the EU's executive body, the European Commission.

"I am confident that we can act very quickly," Charles Michel, president of the European Council consisting of EU leaders, told reporters, as reported by Reuters, March 22.

The leaders' desire for urgency reflects growing concerns about the war in Ukraine, with Kyiv's ammunition-starved forces struggling to hold off Russian forces, while Washington's $60 billion US military aid package for Kyiv is stalled in Congress.

Meanwhile, European Commission President Ursula von der Leyen said the first 1 billion euros of the scheme could be disbursed as soon as July 1.

The Commission has proposed transferring 90 percent of profits from frozen Russian assets to an EU-run fund used to finance weapons in Kyiv. Meanwhile, the remaining 10 percent will be used for budget assistance for Kyiv.

The commission estimates profits from the Russian central bank's assets, various securities and cash, could reach between 2.5 billion euros and 3 billion euros a year.

The idea of ​​using the proceeds of frozen Russian assets to help Ukraine, which Moscow says constitutes theft, has wide support among EU governments, Michel and von der Leyen said.

Major European Union countries, such as Germany and France, voiced strong support for the plan.

"This (revenue) must first be used to buy the weapons and ammunition Ukraine needs to defend itself," said German Chancellor Olaf Scholz.

However, using the money to buy weapons is more problematic for some countries, including militarily impartial neutral states such as Malta, Austria and Ireland.

"For us neutrals, it must be ensured that the money we approve is not spent on weapons and ammunition," said Austrian Chancellor Karl Nehammer.

Michel said the EU could find a way to take their concerns into account as part of the scheme.

Meanwhile, Ukrainian President Volodymyr Zelensky urged the EU to go further and use the assets itself, something the bloc is not considering.

"Russia must feel the real impact of the war and the need for a just peace," President Zelensky told EU leaders via video link.

He added that it was "a shame for Europe" that Ukraine did not have enough artillery in its fight against Russia, which invaded them in February 2022.