The use of proceeds generated by frozen Russian assets is reportedly on the table
EU lawmakers are set to discuss the creation of a new fund aimed at raising money for more military aid to Ukraine, the Polish Press Agency (PAP) reported on Monday. The initiative would reportedly be funded in part by proceeds generated from frozen Russian assets.
The report comes amid concerns in Brussels that US President Donald Trump will begin cutting financial and military support to Ukraine. The Trump administration has demanded that Kiev reimburse the US for aid provided since the escalation of the Ukraine conflict in February 2022.
Discussion of the new EU initiative is reportedly scheduled for Tuesday. The main goal of the potential fund is to address Ukraine’s most urgent military needs, including artillery ammunition, air defense systems and long-range missiles, according to a document obtained by PAP. Broader support for Ukraine’s defense sector, including training and equipment, as well as joint EU-Ukraine industrial initiatives, are reportedly included in the plan.
The news agency noted that funding for the initiative is expected to come from voluntary contributions by EU member states, proportional to their national income, as well as profits from frozen Russian assets, estimated to generate up to €900 million ($940 million) this year.
Since 2022, Washington and Brussels have frozen an estimated $300 billion in Russian central bank reserves along with billions in private assets. Western officials have proposed redirecting some of the funds to Ukraine, but legal concerns have slowed such efforts. Proceeds from the assets are already being used to back a $50 billion loan for Ukraine from the G7.
The Kremlin has repeatedly stated that Western nations’ support for Kiev makes them direct participants in the conflict. Moscow has also condemned the asset freeze as “theft,” arguing that accessing the funds would be illegal and set a troubling precedent.
The new EU funding mechanism has to obtain full bloc-wide support before being implemented, PAP noted. It noted, however, that participation could be voluntary to avoid a deadlock similar to the bloc’s standoff with Hungary, which blocked funding for Ukraine at various stages of the conflict.
