EU transfers part of the proceeds from frozen Russian assets to support Ukraine
The EU announced Friday that it was transferring some 1.5 billion euros (1.6 billion dollars) for support for Ukraine from profits generated by Russian assets frozen in the bloc.
EU countries agreed in May on a plan to use billions of euros generated by those frozen assets to arm Ukraine and fund its post-war reconstruction.
The EU froze about 200 billion euros of Russian central bank assets held in the bloc as part of sanctions imposed on Russia for its invasion of Ukraine in 2022.
About 90% of the frozen funds in the EU are held by the Belgium-based international depository organisation Euroclear.
"The EU supports Ukraine. Today we are transferring 1.5 billion euros from frozen Russian assets for the defence and reconstruction of Ukraine," European Commission President Ursula von der Leyen said in a statement.
The EU stands with Ukraine.
— Ursula von der Leyen (@vonderleyen) July 26, 2024
Today we transfer €1.5 billion in proceeds from immobilised Russian assets to the defence and reconstruction of Ukraine.
There is no better symbol or use for the Kremlin’s money than to make Ukraine and all of Europe a safer place to live. pic.twitter.com/keDyf9Dzzd
The EU said 90% of the proceeds would go into a fund used to pay for arms for Ukraine, known as the European Peace Fund.
The other 10% will go to an EU fund to support Ukraine's reconstruction needs.
Russia criticised the move as "illegal", while Ukraine applauded the gesture.
"This is a reason to take measures in response to illegal decisions like this, which are implemented by the European Union," Dmitry Peskov, spokesman for Russian President Vladimir Putin, told reporters.
Meanwhile, Ukrainian Prime Minister Denys Shymgal thanked the EU for its support. "Thank you Von der Leyen and the EU for your strong support and this important contribution to the defence and reconstruction of Ukraine," he said on social media.
