EU Plans to Fund Ukrainian Arms with Frozen Russian Assets, Faces Kremlin’s Legal Threats

The European Union plans to finance Ukrainian arms purchases with revenues from frozen Russian assets. This strategy, if implemented, is based on the legal framework targeting the profits generated by these assets rather than the assets themselves. Expected to generate 2.5 to 3 billion euros annually, the initiative aims to allocate 90% of these revenues to the European Peace Facility for military support, and 10% to the EU budget for Ukrainian defense strengthening.

This move has provoked a stern response from Moscow, which qualified the European plan as “theft” and a violation of international norms. The Kremlin threatened the EU with long-term legal actions, warning of potential damage to Europe’s economy, reputation, and the principle of property inviolability.