By AFP | 2024-03-22

BRUSSELS -- European Union (EU) leaders March 21 agreed to "take work forward" on a plan to use the profits from frozen Russian central bank assets to arm Ukraine.

The proposal, at the heart of talks between leaders at a summit in Brussels, could unlock some €3 billion ($3.3 billion) a year for Kyiv -- once it receives a final green light.

"I'm glad that leaders endorsed our proposal to use the extraordinary revenues from immobilized Russian assets. This will provide funding for military equipment to Ukraine," European Commission (EC) chief Ursula von der Leyen told reporters.

The EU froze about €200 billion of Russian central bank assets held in the bloc as part of punishing sanctions imposed on Moscow for sending troops into its neighbor in February 2022.

EU leaders insisted the plan to target the interest being made by the frozen assets was legally sound.

But the Kremlin warned it would use legal and "other methods of retaliation" to hit back.

EU chief proposes raising tariffs on Russian grain

Brussels is proposing raising tariffs on Russian and Belarusian grain to protect Europe's farmers and punish Moscow over its war on Ukraine, von der Leyen said March 21.

The announcement came hours after Zelenskyy complained to EU leaders that it was not fair that Russian grain continued to have "unrestricted" access to their markets, while Ukrainian imports were being limited.

"It will prevent Russian grain from destabilizing the EU market in these products. It will stop Russia from using the revenues from the export of these goods," von der Leyen said after the EU summit in Brussels.

Five EU nations -- Poland, the Czech Republic and three Baltic states -- had appealed jointly to the EC to impose a full ban on grain imports from both Russia and Belarus.

Under World Trade Organization rules, Russian agricultural imports have until now been exempt from EU import duties.

While the EU has taken aim at huge swathes of Russia's economy in waves of sanctions since 2022, it has taken care not to target the farm or fertilizer sectors -- for fear of destabilizing the global cereal market, and undermining food security in Asia and Africa.