(MENAFN) In a recent interview with the Spanish Sud Ouest news outlet, Josep Borrell, the European Union's foreign policy chief, expressed concerns over a potential funding vacuum for Ukraine if the United States were to reduce or halt its support. Borrell emphasized the need for the European Union to adopt a more creative approach to provide additional financial assistance to Ukraine in such a scenario. He underscored the challenges of matching the substantial financial aid that the United States currently provides, stating that the European Union cannot easily allocate USD50 billion on top of its existing support to Kiev. Borrell highlighted the importance of political will among European Union member nations to mobilize such significant resources, noting that urgency often only arises when crises are imminent.
To address the funding shortfall, Borrell proposed leveraging the profits generated from Russia's frozen central bank reserves. He suggested redirecting 90 percent of these revenues towards procuring arms for Ukraine, while the remaining 10 percent would be allocated to the European Union budget to support Kiev's defense industry. Borrell estimated that this approach could yield approximately EUR3 billion (USD3.25 billion) annually, acknowledging that while not extraordinary, it would still be a significant contribution. However, he acknowledged that such a move would likely provoke a response from Russia, indicating potential diplomatic tensions.
Borrell's proposal comes ahead of a scheduled debate within the European Union on how to enhance spending on Ukraine's defense. His suggestion reflects a proactive approach to addressing the potential consequences of a reduction in United States support for Ukraine, highlighting the European Union's commitment to supporting the country's security and stability. By tapping into alternative sources of funding and exploring innovative solutions, Borrell aims to ensure that Ukraine receives the necessary assistance to address its security challenges effectively.
The proposal also underscores broader discussions within the European Union regarding its role in regional security and defense cooperation. As geopolitical tensions continue to escalate, particularly in Eastern Europe, Borrell's initiative signals the European Union's determination to play a more active role in addressing security threats in its neighborhood. However, the proposal is likely to face scrutiny and debate within the European Union, considering its implications for relations with Russia and the broader geopolitical landscape.
MENAFN24032024000045015687ID1108014887
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.