EU Council approves transfer of frozen Russian asset revenue to Ukraine

May 22,2024 528
EU Council approves transfer of frozen Russian asset revenue to Ukraine

The Council of the European Union has agreed to use revenues from frozen Russian assets for Ukraine, according to the Belgian Presidency of the Council of the EU 2024. “The EU Council has confirmed its agreement to use windfall profits from Russia’s immobilised assets to support Ukraine’s military self-defence and reconstruction in the context of the Russian aggression,” the message reads.

The amount involved is €2.5-€3 billion per year, with most of the funds directed towards Ukraine’s military needs. “We have approved in the EU using revenues from Russia’s central bank’s frozen assets to help Ukraine. Up to €3B only this year, 90% goes for Ukraine’s military. Russia must pay for its war damages,” wrote Czech Foreign Minister Jan Lipavský.

Bloomberg reported that the EU’s plan involves transferring the revenues generated after February 15 to Ukraine. The finances will be held in the Belgian depository Euroclear to cover any risks associated with, for example, legal claims in Russia.

According to the European Commission, Ukraine will receive the first payment from the profits of the frozen Russian assets in the EU in July. “Resources will be available to support Ukraine starting from July 2024, with bi-annual payment,” the statement said.

Earlier, the UWC President called for the confiscation of Russian assets. “Finding the right formula to fund Ukraine with Russia’s frozen assets should be an international priority. This will reduce the financial pressure on Western countries and undermine economic arguments against continued international support for Ukraine,” Paul Grod wrote.

Cover: Shutterstock

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