EU Allocates 1.5 Billion Euros from Frozen Russian Assets to Support Ukraine

The European Union has allocated 1.5 billion euros from frozen Russian assets to support Ukraine. The funds will primarily aid in military support and reconstruction. This decision is part of a broader strategy using profits from frozen assets and aims to help Ukraine's defense and rebuilding efforts amid ongoing conflict.

The European Union has pledged 1.5 billion euros (USD 1.6 billion) to support Ukraine, marking the first use of profits generated from frozen Russian assets. The move is part of a broader strategy agreed upon by the EU's 27 member states, which plans to channel interest accrued on 210 billion euros (USD 225 billion) in Russian central bank assets towards Ukraine's military and reconstruction needs.

Most of the frozen money, held in Belgium, forms part of the EU's sanctions against Russia following its invasion of Ukraine. With an estimated annual interest of around 3 billion euros, Brussels intends to use these funds to strengthen Ukraine's defense and rebuilding efforts.

European Commission President Ursula von der Leyen stated, 'The EU stands with Ukraine. Today we transfer 1.5 billion euros in proceeds from immobilized Russian assets to the defense and reconstruction of Ukraine. This is a powerful symbol and a practical use of Kremlin's money to make Europe safer.'

In light of recent advances by Russian forces in Eastern Ukraine, the financial support is deemed critical. The EU plans to allocate 90% of the funds into the European Peace Facility for reimbursing arms and ammunition sent to Ukraine by EU countries. The remaining 10% will reinforce Ukraine's defense industry or aid reconstruction, subject to individual country preferences within the EU.

(With inputs from agencies.)