EU Could Send First €1 Billion from Frozen Russian Funds to Ukraine by July

Written by Camilla Jessen

Mar.22 - 2024 12:23 PM CET

Photo: Wikimedia Commons
Photo: Wikimedia Commons
The EU can transfer the first 1 billion euros from the frozen assets of the Russian Federation to Ukraine already in July.

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Ukraine can receive the first 1 billion euros of profit from frozen Russian assets already at the beginning of July. This was disclosed by European Commission President Ursula von der Leyen during a press briefing following the first day of the EU leaders' summit in Brussels.

"I told the [EU] leaders that if we quickly prepare a proposal now, we can pay the first billion on July 1st. So it depends on us," she stated, adding that there is strong support for using the proceeds for "military purposes for Ukraine."

On March 21, EU leaders agreed to confiscate most of the profits from frozen Russian assets and transfer them to Ukraine. The European Commission projects this could yield up to 3 billion euros annually, amounting to 15 billion euros by 2027.

EU High Representative for Foreign Affairs and Security Policy, Josep Borrell, proposed allocating 90% of the proceeds from the frozen Russian assets to purchase weapons for the Ukrainian army.

The remaining 10% will be contributed to the EU budget to enhance the Ukrainian defense industry's capacity.

On January 23, it was revealed that the EU plans to apply a tax on excess profits from the frozen assets of the Central Bank of Russia, but without confiscation of funds. A group of countries, including Germany, made it clear that they are against the seizure of Russian assets for legal reasons.

On January 29, EU ambassadors reached an "in-principle" agreement on using profits from frozen Russian assets to help Ukraine.

Last week, German Chancellor Olaf Scholz confirmed that the Western allies would direct funds from the aggressor country's frozen assets towards military aid for Ukraine.

Austria voiced opposition to allocating revenue from frozen Russian assets for purchasing weapons for the Ukrainian military.

On January 6, 2024, President Volodymyr Zelensky estimated the foreign assets of Russia available for confiscation at $300 billion and urged for these funds to be employed in supporting Ukraine.

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