EU leaders are contemplating a plan to use seized Russian assets to support Ukraine amidst its ongoing conflict with Russia. The proposal suggests that 90% of these funds be used for purchasing arms and weaponry, while the remaining 10% would enhance Ukraine’s defence industry. This initiative comes as Ukraine faces dire circumstances, with reports of air attacks and intense bombing, particularly in the Sumy region, prompting mass evacuations and highlighting the urgent need for military aid.

In response to the critical shortage of munitions in Ukraine and the stalled US efforts to provide additional weapon funds, the European Union, led by EU foreign policy chief Josep Borrell, is advancing a plan to tap into roughly 200 billion euros of frozen Russian assets. This strategy could generate around 3 billion euros annually to bolster Ukraine’s defence capabilities. Despite potential criticisms from Russia and concerns about market confidence, consultations with the European Central Bank have occurred to ensure the plan’s feasibility.

Germany has also announced a €500 million military aid package for Ukraine, which includes ammunition and vehicles, in a bid to support Ukraine’s artillery capabilities against Russian forces. This package is part of broader European efforts to augment Ukraine’s military strength, including a significant US aid package and collaborative initiatives with Czech Republic for additional ammunition procurement.

The EU’s plan aims at utilizing the profits from the immobilized Russian assets for weapon acquisition and support to Ukraine’s defence sector through the European Peace Facility, with initial disbursements possibly starting as early as July. This strategy represents a concerted effort by the EU and NATO allies to ensure Ukraine’s resilience in the face of the Russian invasion, amidst discussions on increasing artillery ammunition supply, EU accession negotiations, and trade benefits to sustain Ukraine’s economy during the war.