Spain has initiated the creation of a new European Defence Fund, which will provide non-refundable grants to strengthen the defence of EU countries and support Ukraine. The funding is to come from the frozen assets of the Russian central bank and contributions from member states, Bloomberg reports.
This was stated by Spanish Minister of Economy Carlos Cuerpo during a meeting of EU colleagues in Warsaw. He called for “true European solidarity” and investment in common security.
“Together we must invest in defence, which is a European public good that benefits citizens and strengthens our economic security,” Cuerpo said.
Spain wants to focus on grants, not loans, to strengthen the EU’s eastern countries, which are most vulnerable to the Russian threat.
Part of the more than €200 billion in frozen Russian assets is planned to be used to finance military projects for the benefit of Ukraine.
The European Commission is already exploring new ways to use these funds, especially amid uncertainty on the part of the United States about further support for Kyiv.
