European Union countries have recently come to an agreement to utilize the profits generated from frozen Russian assets to extend military support to Ukraine and aid in the reconstruction efforts of the war-torn nation. The EU, consisting of 27 member states, currently holds approximately 210 billion euros ($225 billion) in Russian central bank assets, with the majority of these funds frozen in Belgium as a response to Moscow's actions in Ukraine. It is estimated that the interest accrued from these assets could amount to around 3 billion euros ($3.3 billion) annually.
Given Ukraine's urgent need for weapons and ammunition amidst Russia's military advancements, the EU has outlined a plan to allocate 90% of the funds to a specialized fund called the European Peace Facility. This fund is already utilized by several EU countries to seek reimbursement for arms and ammunition supplied to Ukraine. The remaining 10% of the funds will be directed towards the EU budget, with programs aimed at strengthening Ukraine's defense industry and supporting reconstruction efforts in case certain countries object to their portion being used for military purposes.
While the majority of EU member states are in favor of providing military aid to Ukraine, a few, such as Hungary, have expressed reluctance to supply weapons to the nation. Officials have indicated that an initial portion of the funds could potentially be made available as early as July, signaling a swift response to the pressing needs of Ukraine in the face of ongoing conflict.
