"There are two opposing approaches regarding the distribution of frozen Russian assets. The first is that all funds should go directly to Ukraine, allowing the state to independently allocate them for economic support or defence. The second view is that all funds should remain within the EU, with the most the Ukrainian defence sector can expect being the creation of joint ventures," explained Oleksandra Azarkhina, Head of the Defence Industries Initiatives at the Economic Security Council of Ukraine (ESCU), on Suspilne Ukraine.
In her opinion, a balanced approach will ultimately be adopted. However, the mechanism for transferring these assets remains an open question.
"The 'Danish model', where funds are transferred directly to the Ukrainian budget to finance specific defence projects, is an important initiative, but it has its limitations. That is why the Economic Security Council is working on establishing an International Defence Procurement Agency — a platform where Ukraine, together with its partners, can finally begin conducting consolidated procurement," Azarkhina added.
Read more about the International Defence Procurement Agency in the ESCU Briefing Paper: https://reb.org.ua/en/news/analiticna-dovidka-miznarodna-agenciya-oboronnix-zakupivel-288m82