Borrell suggests investing proceeds from frozen Russian assets in Ukraine's defence industry
The EU will open a military innovation office in Kyiv to establish contacts between European start-ups and Ukrainian defence companies
The proceeds from Russian assets frozen in the EU should be used to produce weapons in Ukraine, European diplomat Josep Borel has said. According to him, as soon as the member states finally agree on the use of these funds, they should be used for the needs of the Ukrainian defence industry, in particular, to invest in local military plants.
"This money should be sent to Ukraine so that Ukrainians can produce products on their own, on their own territory, close to their needs. This will save on transportation costs and avoid delays," Borrell explained at the EU-Ukraine Defence Industry Forum, moscowtimes.eu reported.
He said that one of the tasks is to integrate the Ukrainian defence industry into the EU defence ecosystem, and to do this, Kyiv-controlled military plants should "produce faster and more".
Noting that 140 companies from 25 countries are participating in the forum, Borrell called on them to combine their capacities with those of Ukraine and promised funding for such joint work.
He also said that this year the EU will open a military innovation office in Kyiv to establish contacts between European start-ups and Ukrainian defence companies.
Of the nearly $300 billion in Russian assets frozen in the West, approximately €190 billion (about $203 billion) is held in Euroclear. In 2023, they brought the depository €4.33 billion ($4.7 billion) in profit. And in the first quarter of 2024, Euroclear earned €1.566 billion on them. The funds are withdrawn to a special account.
The EU is currently coordinating existing proposals for the use of profits from frozen Russian assets. It is expected that the money will be spent on arms purchases and the restoration of Ukraine. The consensus will make it possible to add €3 billion to the association's €16 billion commitments by June, EU Economic Commissioner Paolo Gentiloni said.
In turn, the United States, along with a $61bn aid package to Ukraine, approved a law on the confiscation of Russian reserves in the country. Congress had estimated the amount at $5-6bn. Now the White House will be able to withdraw the frozen funds of the Central Bank of Russia in American banks and transfer them to a special fund for Ukraine, CNBC reported.
As reported, Denmark and Canada are ready to finance the production of weapons by the Ukrainian defence industry. The head of the Ministry of Strategic Industries, Kamyshin, stressed that Ukraine is capable of producing more weapons, but additional funds are needed.
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