The European Union is considering using up to €9 billion of credit secured by frozen Russian assets to finance military assistance to Ukraine in 2025, according to European Pravda.

The conclusions from the EU summit on March 20 highlighted the “military needs component of the G7 ERA initiative” as one of the potential methods to fund Ukraine’s military requirements.

Under this initiative, the EU is set to allocate €18.1 billion in credit to Ukraine in 2025, which will be repaid through proceeds from frozen Russian assets.

One of the diplomats told the media outlet that under the G7 ERA loan conditions, secured by revenue from frozen Russian assets, up to €9 billion of this amount could be allocated for military needs.

However, it remains unclear how the Ukrainian government plans to use the remaining €18.1 billion.

The first indication that part of the loan funds could be directed toward weapons procurement was in September 2024, when Ukrainian President Volodymyr Zelensky mentioned the possibility during a press conference with European Commission President Ursula von der Leyen in Kyiv.

Zelensky noted that some of the funds would be used to purchase weapons, particularly long-range drones and missiles, primarily of Ukrainian production. At the time, the exact allocation for military versus budgetary and humanitarian needs was not specified.

The discussion of this credit mechanism follows the failure of EU chief diplomat Kaja Kallas’s plan to allocate €40 billion for military aid to Ukraine.

According to the publication, some EU member states were disappointed with Kallas’s proposal, as it had not been discussed with them before being put forward.

One top EU diplomat described the plan as “very raw” and said it lacked the necessary support for governments to commit to providing billions of euros from national budgets.

Despite this, the Kallas initiative has not been abandoned, according to European Pravda. The next major discussion on the topic is expected to take place during an informal meeting of EU defense ministers in Warsaw on April 2-3.