Photo: depositphotos
Historic First Tranche
European Commission President Ursula von der Leyen has announced the transfer of €1.5 billion to Ukraine from the profits of frozen Russian assets. This is the first tranche from this fund.
A Symbolic Use of Kremlin Money
“There is no better symbol or way to use Kremlin money than to make Ukraine and all of Europe a safer place to live,” von der Leyen wrote on social media platform X.
Fund Allocation Details
According to the European Commission’s press service, 90% of this sum will be allocated to the European Peace Facility, while the remaining 10% will go to the Ukraine Facility program. The funds will be used to support Ukraine’s military potential and reconstruction efforts.
Russia’s Response
Meanwhile, Kremlin spokesman Dmitry Peskov promised that the Russian authorities “will not leave this decision unanswered.” “This is not a reason for an immediate reaction. This is a reason for thoughtful actions in response to such illegal decisions implemented by the European Union. These actions will certainly follow, but they must be carefully considered and fully align with our interests,” Peskov stated.
Background on Frozen Assets
Since the full-scale invasion of Ukraine by Russian troops, around €260 billion worth of Russian Central Bank assets have been frozen in the West. The majority of these funds (about €190 billion) are held in the Belgian depository Euroclear. For a long time, EU countries could not reach an agreement on the use of these funds, fearing that full confiscation of the assets could affect the stability of the euro.
EU’s Plan for Annual Support
In May 2024, EU countries approved a plan to use the proceeds from frozen Russian assets to support Ukraine. It is expected that frozen Russian assets will generate about €5 billion in annual profits. Ukraine will receive payments twice a year.
Source: Meduza
