EU leaders intend to take an important step towards confiscating €27 billion in profits from Russia's sovereign assets frozen in Europe to provide military aid to Ukraine.

The Guardian's sources said that European Commission officials are ready to put forward what they believe to be a legally sound proposal for consideration by EU member states, possibly before the meeting of prime ministers in Brussels next Thursday.

An unnamed senior EU official told The Guardian that deposits in Europe are likely to generate between €15 billion and €20 billion in after-tax profits between now and the end of 2027, depending on the dynamics of global interest rates.

The article notes that while officials hope to reach an agreement on the withdrawal of profits, they do not yet expect an agreement on how the money should be used, as some states oppose using it to fund the Ukrainian military, preferring to spend it on reconstruction and humanitarian efforts.

The sources said that the European Commission would not be proposing options for how the money should be used.

"It means they can agree in principle to use the revenues of profits but then have a further discussion on where that money can go constitutionally for every member state," one source said.

The source said that the process had gained momentum, and the EU expects that once the decision is made, the case will move forward.

Earlier, the media reported that the European Commission is seeking to speed up the approval of a mechanism that will allow the use of profits from Russia's frozen sovereign assets so that Ukraine can receive the first tranche of €2-3 billion in July.

Media report that US President Joe Biden wants the G7 countries to make progress on plans to use seized Russian sovereign assets to support Ukraine before their summit in June 2024.

Read more on the topic: Challenges of Confiscation: What Will Help Ukraine Achieve Transfer of Russian Assets