Russian asset profits

Von der Leyen: Use Russian asset profits to buy ammo for Ukraine

“It is time to start a conversation,” says EU Commission chief.

BY JOSHUA POSANER AND GREGORIO SORGI

The EU should use profits from over $200 billion of frozen Russian assets to fund Ukraine's war effort, European Commission President Ursula von der Leyen said Wednesday.

The Commission has long pushed to use those profits. The U.S. is pressing for all the assets to be seized and handed over to Ukraine, but some EU countries fear such a move might create turmoil on financial markets. 

It's the first time von der Leyen has proposed using earnings generated by those assets to purchase ammunition for Ukraine.

"It is time to start a conversation about using the windfall profits of frozen Russian assets to jointly purchase military equipment for Ukraine," she told MEPs.

At the end of January, member countries agreed to move the proceeds from Russia's immobilized assets in Europe into a separate account, and they now are held in the Brussels-based security depository Euroclear.

The Commission is expected to propose a plan to use the profits to support Ukraine in mid-March, two officials told POLITICO speaking on condition of being granted anonymity.

"There could be no greater symbol and no greater use for that money to make Ukraine and all of Europe a safer place to live," von der Leyen said. "Ultimately this is about Europe taking responsibility for its own security."

As Russia's invasion grinds into a third year, the Ukrainian army is running short of artillery ammunition as Western pledges fall short, prompting the Commission to look for alternative ways of raising cash for military purchases.

"The cost of insecurity — the cost of a Russian victory — is far greater than any saving we could make now. This is why it is time for Europe to step up," the Commission president said.