the consent of all EU countries is required to use the profits from Russian assets for the defense of Ukraine

The European Union must strengthen its defense industry to replenish its stockpiles, to “prepare for potential threats” and to continue providing military aid to Ukraine. This was stated by EU High Representative Josep Borrell on March 11, commenting on the presentation of the European Defense Industry Strategy.

“After two years of high-intensity war (Russia vs. Ukraine – ed.), the available reserves are depleted and the conflict has shifted from a war of reserves to a war of production,” Borrell said.

At the same time, according to the diplomat, the production of ammunition is only “part of the problem”:

“We need to do much more to develop this industrial sector. The European defense industry includes a large number of players, from large transnational leaders to small and medium-sized enterprises. It is highly concentrated geographically: a few Member States account for 90% of the total defense industry in Europe. This industry has annual turnover of 70 billion euros and has 500,000 employees”.

Borrell notes that European armies import most of the weapons and equipment they use – only 40% of their needs are met from EU stocks.

He announced the creation of the Defense Industry Readiness Council, which will identify opportunities for joint procurement and targets for industrial production.

He also spoke in favor of strengthening cooperation with partners, in particular, with Ukraine and its “powerful and innovative defense industry base”. Borrell said that he was impressed by the visit to the Ukrainian facility for the production of drones.

The EU representative also mentioned the possibility of using profits from frozen Russian assets to support the defense of Ukraine:

“If the member states agree (it must be a unanimous decision on the proposal of the high representative), we can use the excess profits from the frozen Russian assets to buy weapons for Ukraine and/or help strengthen its defense industry.”

He admitted that the EU was currently considering the possibility of using these funds for the reconstruction of Ukraine, but “at the moment, the main thing is not so much reconstruction as avoiding further destruction.”

“If the member states agree, it would be appropriate to use these resources to provide additional military support to Ukraine through the European Peace Fund. In the long term, we could also use these funds to support the Ukrainian defense and industrial base,” he suggested.

On March 5, the European Commission presented a new defense and industrial strategy, which should put the economy of the European Union on a military track.

At the end of February, the head of the European Commission, Ursula von der Leyen, said that the EU should “start a conversation” about the purchase of weapons for Ukraine at the expense of the profits from frozen Russian assets.