EU proposes to buy US weapons for Ukraine with Russia's frozen asset

The European Union has said it is ready to buy US-made weapons with Russia’s frozen assets worth €140bn for Ukraine, on the condition that Washington keeps backing Kyiv in the war.

The European Commission intends to use frozen Russian central bank assets held at Euroclear, Belgium’s central securities depository, to finance a €140 billion “reparations loan” for Ukraine in response to the ongoing war.

The announcement comes as US President Donald Trump has once again leaned towards Russia, with Potus announcing that he will meet President Vladimir Putin in Hungary later this month.

What has the EU proposed?

As per the commission’s plan, seen by the Financial Times, the biggest chunk of this loan would be used to procure weapons and support Ukraine and Europe’s defence industries.

France had proposed the use of European weapons for the cause, but the bloc noted that “co-operation… could be envisaged with international partners that commit to provide substantial additional support” to Ukraine.

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The proposal aims to use large-scale weapons procurement contracts to maintain US support, according to diplomats and EU officials. In recent months, Trump has shifted his stance, permitting increased US arms sales to Ukraine, on the condition that Europe and other allies cover the costs.

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During a meeting with Zelenskyy, Trump downplayed the prospects of supplying Tomahawk cruise missiles to Kyiv in its war against Russia. At the White House meeting between the two leaders, Trump seemed more intent on brokering a peace deal than on supplying the missile system.

While the American president did not rule out providing the long-range missiles to Zelenskyy, he went on to exclaim that the United States may need them in “future conflicts”. He appeared to be cool on the matter and said he is looking forward to his meeting with his Russian counterpart,  Vladimir Putin, in Hungary, The Guardian reported.