EU Proposes Ukraine Weapons Purchases from Frozen Russian Assets

The European Commission has proposed that Ukraine utilize a portion of a planned €140 billion ($163 billion) loan – funded by frozen Russian assets – to procure weapons from countries outside the European Union.

A commission paper circulated to member states today, October 17, 2025, details the potential structure of the plan initially unveiled last month. The loan would be divided into two parts: the larger portion dedicated to bolstering Ukraine’s defense industry and acquiring defense materials within Ukraine and the 27-nation EU. The second component would provide budget support, enabling Ukraine to purchase weapons elsewhere as it continues to defend against Russia’s ongoing invasion and increasingly frequent missile and drone attacks.

This budget support is also intended to provide the financial assurances Kyiv needs to secure further assistance from the International Monetary Fund. Yesterday, German Chancellor Friedrich Merz announced he would advocate for the use of frozen Russian assets for Ukraine’s war effort at the upcoming EU summit. The move comes as Ukraine faces critical shortages of ammunition and air defense systems, impacting its ability to hold the front lines.

While there is general political agreement on the principle, some EU countries have requested further clarification regarding the legal and financial risks involved. The Kremlin has condemned the proposal as an illegal seizure of Russian property, warning of potential retaliation should assets be confiscated; similar concerns were raised regarding the seizure of Russian assets in Belgium earlier this year according to Reuters.

Officials indicated that further discussion and legal review will be necessary before the plan can be implemented, with the EU summit expected to be a key forum for debate.