The EU is pushing for Ukraine to see profits from frozen Russian assets as soon as July

• An EU proposal seeks to use profits from Russia's frozen assets in Ukraine, Bloomberg reported.
• Proceeds would help purchase weapons for Kyiv to fight the war.

Profits generated by Russia's frozen reserves could start funding Ukraine as soon as this summer, based on a proposal from the European Union.

If approved by all EU members, the coalition would put in place a windfall tax on profits made by the reserves. That would be enough to provide an estimated $3.3 billion each year to purchase weaponry for Kyiv, starting in July, Bloomberg reported.

The proposal offers a middle-ground solution for Western leaders, who have disagreed on how best to use Russia's immobilized funds. Around $217 billion of these assets are held by the EU and were frozen after Moscow's invasion of Ukraine in 2022.

While some, including US officials, have called for the direct seizure of the reserves themselves, others held concerns that this would spark financial instability, as well as provoke a Russian response.

But even the current proposal could spark friction.

"If we do that, well, the Russians will not be very happy. The amount of money - three billion (euros) per year - is not even extraordinary. But it is not negligible," EU Foreign Policy Chief Josep Borrell, who headed the plan, said.

Ukraine is running dangerously low on weapons as its war with Russia's drags on into its third year. Although Europe did approve funding to help Kyiv, key US support of $60 billion is held up by debate among Congressional leaders.

Under Borrell's proposal, reserve profits would go towards the European Peace Facility, a fund that offers military aid to non-EU members, especially Ukraine. Meanwhile, 10% would be used to boost Ukraine's defense industry.

EU members are set to discuss the idea later this week, as leaders head to a summit on Thursday and Friday, Reuters reported.

Russian officials have previously pushed back on discussions dealing with the assets, with warnings about legal repercussions and similar actions taken against Western funds within the country.