Czech Republic to Utilize Interest on Frozen Russian Assets for Ukraine Aid

The Czech Republic plans to use interest earned on Russian assets frozen in the EU to buy large-calibre ammunition for Ukraine. This initiative is part of a broader effort by EU countries to support Ukraine using profits generated from these assets, which include bonds and securities. The Kremlin has condemned the plan as 'theft'.

The Czech Republic will allocate some of the interest accrued from Russian assets frozen in the European Union to procure additional large-calibre ammunition for Ukraine, according to the Czech Defence Ministry.

Approximately $300 billion worth of sovereign Russian assets were blocked by Western countries after Russia's February 2022 full-scale invasion of Ukraine. EU member states have decided to funnel the interest generated from these assets into an EU fund dedicated to supporting Ukraine in its conflict with Russia.

In June, EU governments agreed to allocate 1.4 billion euros ($1.5 billion) in profits from these assets towards military and other support for Ukraine. The Czech Defence Ministry has been at the forefront of this initiative, purchasing artillery ammunition for Ukraine with backing from Western partners. Monthly deliveries of ammunition have been ongoing since June, as part of the broader aid effort. The Kremlin has denounced this move as 'theft' and has vowed to pursue legal actions against those involved.

(With inputs from agencies.)