Belgian Prime Minister Alexander De Croo expressed his approval on Thursday for a European Union proposal to utilize profits from frozen Russian financial assets to procure arms for Ukraine. This proposal comes ahead of an upcoming summit where leaders of EU countries will deliberate on the plan.
The European Commission, the executive body of the EU, recently put forth a proposal to allocate profits, estimated at 2.5-3.0 billion euros ($2.7-3.3 billion) annually, from Russian assets frozen in Europe following Moscow’s invasion of Ukraine. Approximately 90% of these profits would be directed to Kyiv.
Belgium’s Euroclear is among the primary entities responsible for freezing these assets, and the proposal suggests transferring the majority of the profits to Ukraine for the purchase of weapons through the European Peace Facility fund. The remaining portion will be allocated to support recovery and reconstruction efforts.
Prime Minister De Croo expressed his support for the proposal, stating that it presents a sensible approach. He emphasized the significance of allocating the funds primarily for the acquisition of weapons, considering the current situation.
According to the Commission’s plan, Ukraine will also receive tax revenue generated by the Belgian government from the profits. In 2024, this is anticipated to amount to 1.7 billion euros, with 1.5 billion euros expected to be disbursed this year alone.
Overall, the total financial contribution to Ukraine from frozen Russian assets in the EU could reach approximately 4.0-4.5 billion euros this year. However, Russia has denounced the Commission’s plan, labeling it as “banditry and theft,” and warning of potential legal repercussions for decades.
Leaders of the 27 EU countries are set to discuss the proposal at the upcoming summit. Prime Minister De Croo indicated that he has received positive feedback from other leaders regarding the proposal thus far.
