Ursula von der Leyen: EU Considers Redirecting Frozen Russian Funds for Defence

European Commission President Ursula von der Leyen has proposed a strategic initiative regarding the frozen Russian assets held abroad, suggesting that the European Union should contemplate utilizing the profits from these assets for military acquisitions benefiting Ukraine.

Speaking before the European Parliament on Wednesday, von der Leyen emphasized the potential for using these funds to bolster security, stating, “There can be no stronger signal and no better allocation of that money than to make Ukraine, and indeed Europe, a safer place to live.”

Following the Russian invasion, approximately €260 billion of Russian reserves were frozen, with nearly 70 percent of these funds held in Belgium, specifically at Euroclear.

Von der Leyen stressed the necessity for expedited action, noting that while there is currently no immediate threat of war, it cannot be entirely ruled out.

She remarked, “The risk of war should not be overstated, but we must be prepared, and that begins with the urgent need to rebuild, replenish, and modernize the armies of the member states.”

In the coming weeks, the Commission will unveil its plans for defense strategy and industry over the next five years.

The focal points will include joint acquisitions and ramping up the production of military equipment.

Despite advocating for intensified European collaboration, von der Leyen underscored that this should not diminish the significance of a robust NATO.

She stated, “On the contrary, a more independent Europe, particularly in the realm of defense, is vital to strengthening NATO.”

The proposal aligns with broader efforts to enhance European defense capabilities and foster greater autonomy in security matters.

It reflects a recognition of the evolving geopolitical landscape and the imperative for Europe to assert itself as a proactive and resilient actor in safeguarding its interests and those of its allies.