EU to propose that Ukraine use credit from frozen Russian assets for defence spending, says source from EU country
The European Union plans to propose that Ukraine cover its military needs for weapons and ammunition using part of the credit provided to Kyiv under the G7 Extraordinary Revenue Acceleration (ERA) initiative, which is financed by revenue from frozen Russian assets.
Source: member of the delegation of a key EU country, speaking to European Pravda on the sidelines of the extraordinary European Council meeting in Brussels on 6 March
Details: Due to the suspension of US military support and possible delays in the EU's creation of additional funding mechanisms, Ukraine may allocate part of the ERA credit line – which provides Kyiv with €18.1 billion in 2025 from revenues generated by frozen Russian central bank assets – for military procurement, the source told European Pravda.
Quote: "We already have €18 billion on the table for this year, which Ukraine could use to receive military support immediately."
Details: The source linked this initiative to the fact that the proposal by EU High Representative for Foreign Affairs Kaja Kallas to create a substantial military support fund for Ukraine – which could accumulate resources and weapons worth up to €20bn – has yet to gain widespread support among EU member states and remains under discussion.
The official recalled that in 2025, the EU plans to provide Ukraine with over €30bn in macro-financial assistance, of which €12.5bn will come from the Ukraine Facility programme, while €18.1bn will come from the European portion of the G7 ERA credit, which is funded by revenue from frozen Russian assets.
It was emphasised that the ERA credit could be used for military procurement.
Quote: "The essence of this initiative is that we need to accelerate military support for Ukraine, depending on its needs, in the near future so that it can be in the best possible negotiating position. From the €18bn of this loan – from the European share of the G7 loan – we would like to be able to allocate a significant portion to military support."
More details: The source did not specify how much of the €18.1bn could be directed towards defence procurement, as no final decision has been made at the EU level, but suggested that it could be "at least half".
The European official also pointed out that the UK has already decided to allocate a portion of the revenue from frozen Russian assets on its territory to bolster Ukraine's air defence.
Background: The EU is set to provide Ukraine with approximately €35 billion in financial assistance in 2025 under the G7 ERA credit initiative and the Ukraine Facility.
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