Spain proposes to use frozen Russian assets to support Ukraine and strengthen EU defence

Spain has proposed to create a new defence fund to finance European projects and support Ukraine using the frozen assets of the Russian central bank. Spanish Economy Minister Carlos Cuerpo called on the EU to create a temporary instrument to provide non-repayable grants to countries, particularly those in the East, that are most vulnerable to the Russian threat. This fund would be financed by contributions from member states and the European Stability Mechanism.

A part of the frozen assets of the Russian central bank worth €200 billion could be used to finance military projects for the benefit of Ukraine. European Commissioner for Economic Affairs Valdis Dombrovskis noted that the European Commission is ready to explore new ways to implement this instrument, and that support for eastern Europe is an important part of the EU's discussions.

Sources: Ukrinform, Bloomberg