EU chief diplomat Josep Borrell presented a proposal to EU member states on Wednesday (20 March) to utilise the windfall revenues from Russia's frozen assets in Europe to support Ukraine.

Borrell noted on Twitter that his proposal envisages channelling 90% of the funds through the European Peace Fund and 10% through the EU budget.

"I look forward to a rapid adoption [of this measure] by the Council. This will demonstrate the EU[‘s] unity and commitment to support[ing] Ukraine and its people," Josep Borrell stressed.

Today I presented a High Representative proposal for a Council decision to use the windfall revenues from Russian immobilised assets to support Ukraine in its fight to prevail.

90% will be allocated via the European Peace Facility and 10% via the EU budget.
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– Josep Borrell Fontelles (@JosepBorrellF) March 20, 2024

The proposal involves utilising the profits generated by assets held in Europe rather than liquidating the assets themselves. This could bring in around €3 billion annually.

Last week, a senior EU official said Russian assets frozen in the European Union could generate between €15 billion and €20 billion in after-tax profits by 2027, depending on global interest rates.

About 70% of all Russian assets frozen in the West are held in the Belgian central securities depository Euroclear, which has the equivalent of €190 billion in various securities and cash belonging to Russia's Central Bank.

Earlier, Polish Foreign Minister Radosław Sikorski stated that it would be more beneficial if the Russian money frozen in the EU were channelled to support Ukraine's defence rather than its recovery.