EU may allocate up to €9bn for weapons to Ukraine using proceeds from frozen Russian assets

The European Union may allocate up to €9 billion for military aid to Ukraine in 2025 as part of assistance funded through proceeds derived from frozen Russian assets.

The conclusions of the 20 March EU summit mentioned "the military needs component of the G7 ERA initiative" among the possible ways to finance Ukraine's military needs.

This refers to a loan mechanism under which the European Union will provide Ukraine with €18.1 billion in 2025 through the taxation of profits from frozen Russian assets.

"One of the diplomats representing a major EU national told European Pravda that under the terms of the G7 ERA loans secured by the income generated by frozen Russian assets, Ukraine could allocate up to €9 billion for military needs, half of the amount announced for 2025," European Pravda noted.

Meanwhile, the article notes that it is not yet clear what the Ukrainian government's plans are for this €18.1 billion.

The discussion of the ERA mechanism comes as the European Union criticises the plan of its chief diplomat, Kaja Kallas, to allocate billions of euros for weapons to Ukraine, citing the lack of specific implementation mechanisms.

"However, Kallas' initiative isn't dead either. The next substantive discussion on it at the political level will take place at an informal meeting of EU defence ministers in Warsaw on 2-3 April," the article reads.