On Friday, the European Union announced it would allocate 1.5 billion euros ($1.6 billion) to support Ukraine, marking the first installment of funds generated from profits on frozen Russian assets.
In May, the EU’s 27 member states agreed to utilize the interest earned from approximately 210 billion euros ($225 billion) in frozen Russian central bank assets for Ukraine’s military support and reconstruction efforts. These assets, primarily held in Belgium, were frozen as part of sanctions in response to Russia’s invasion. Brussels estimates that the annual interest from these assets could amount to around 3 billion euros.
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“The EU stands with Ukraine. Today, we are transferring 1.5 billion euros from frozen Russian assets to support Ukraine’s defense and reconstruction. This is the most fitting use of the Kremlin’s funds—making Ukraine and all of Europe safer,” stated European Commission President Ursula von der Leyen.
This announcement comes shortly after Russia reported reclaiming two villages in Eastern Ukraine. With ongoing advances by Russian forces in the eastern and northeastern regions, Kyiv is concerned about potential further aggression without continued financial aid.
According to the EU headquarters, 90% of the funds will be directed to the European Peace Facility, a special fund used by many EU countries to be reimbursed for arms and ammunition provided to Ukraine. The remaining 10% will be allocated to the EU budget. This portion of the funds will support Ukraine’s defense industry or contribute to reconstruction efforts, addressing potential concerns from some member states about military expenditures.
(With inputs from online sources)
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