The European Union on Tuesday formally approved using the profits from frozen Russian central bank assets to arm Ukraine, as the United States presses for a more ambitious plan.
The EU hopes the move will generate some €3 billion ($3.3 billion) a year to help Kyiv as it battles against Moscow's invasion.
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“The EU Council has confirmed its agreement to use windfall profits from Russia’s immobilized assets to support Ukraine's military self-defense and reconstruction in the context of the Russian aggression,” Belgium, which holds the bloc's rotating presidency, wrote on X, formerly Twitter.
The EU froze around €200 billion ($217 billion) of Russian central bank assets held in the bloc as part of punishing sanctions imposed on Moscow for sending troops into its neighbor in February 2022.
About 90 percent of the funds frozen in the EU are held by the international deposit organization Euroclear, based in Belgium.
Under the EU scheme, 90 percent of the interest will go to a central fund used to pay for weapons for Ukraine, while 10 percent would go towards reconstruction.
The final approval of the EU scheme, after months of legal wrangling, comes as the United States and Britain are pushing for a more far-reaching plan at the G7.
The scheme being mooted by Washington and London involves issuing a G7 loan of some $50 billion for Ukraine backed by future profits from frozen Russian assets held worldwide.
If adopted, it appears likely that the G7 plan would supersede the EU system.
The topic is set to feature prominently at talks between G7 foreign ministers in Italy this week and could be agreed by leaders at a summit next month.
The push to come up with more money for Ukraine comes as Kyiv's forces struggle to hold back Russian troops on the front line and concerns swirl over Washington's commitment if Donald Trump returns as president.
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