FT: EU proposes buying US weapons for Ukraine using frozen Russian assets

The European Union has proposed using part of a proposed €140bn loan backed by Russia's frozen assets to buy US weapons for Ukraine.

As reported by Financial Times, the proposal was presented to EU ambassadors on Friday 17 October.

The idea emerged after European allies were taken aback by US President Donald Trump agreeing to meet with Russian ruler Vladimir Putin in Hungary.

The European Commission plans to use frozen assets belonging to the Russian Central Bank to finance a €140 billion reparations loan for Ukraine.

Most of the funds will be used to buy weapons and support the defence industries of Ukraine and Europe, according to an internal Commission document outlining the loan's structure that was seen by the Financial Times.

Although France requested that priority be given to European-made weapons, the Commission added that "co-operation … could be envisaged with international partners that commit to provide substantial additional support" to Ukraine.

EU diplomats and officials said the proposal aims to use large arms procurement contracts to keep the United States on side.

The document also calls on G7 allies and other countries to "step up their support for Ukraine alongside the EU".

This could include replicating the EU's reparations loan idea by using frozen Russian assets held under G7 jurisdictions.

The FT points out that the United Kingdom and Canada have indicated their willingness to do so and to "provide additional support".

The reparations loan concept implies that Ukraine would begin repaying the loan only after Russia ends the war and pays post-war reparations.