Politico: Three EU countries oppose the European Commissionʼs plan to transfer revenues from frozen Russian weapons assets to Ukraine

Malta, Luxembourg and Hungary have spoken out against the plan of European Commission President Ursula von der Leyen to use the proceeds from frozen Russian assets to purchase weapons for Ukraine.

Politico writes about this with reference to a source among EU officials.

The three countries warn that Ursula von der Leyenʼs willingness to direct money to restock Ukraineʼs defense forces has complicated negotiations over the use of proceeds from frozen Russian assets, as they had previously agreed that the money would go towards Ukraineʼs post-war reconstruction.

The amount in question is $2-3 billion.

Currently, the European Commission is preparing a plan to seize profits related to sanctions against Russia received by the central securities depository Euroclear. The European Commission will present its proposal to the summit of EU leaders next week. The President of the European Commission Ursula von der Leyen calls to use the money for military support to Ukraine, not for post-war reconstruction. If EU member states approve the plan, Ukraine can receive the first cash tranche as early as July.

• Since the beginning of the war in Ukraine, the EU has frozen the assets of the Russian Central Bank for more than €200 billion. Currently, the United States and the European Union are looking for legal opportunities to use all $300 billion of frozen Russian assets for the benefit of Ukraine.
• US President Joe Biden wants the G7 countries to make progress on implementing plans to use frozen Russian assets for the benefit of Ukraine before the leadersʼ meeting in June 2024. Biden privately told his allies that if Ukraine loses, the international order will be turned upside down for at least the next five decades.