The European Union has announced the allocation of 1.5 billion euros ($1.6 billion) to support Ukraine, marking the first installment of funds derived from profits on frozen Russian assets. This decision follows an agreement reached by the EU's 27 member states in May to utilize the interest accrued on approximately 210 billion euros ($225 billion) in Russian central bank assets. The purpose of these funds is to provide military assistance to Ukraine and aid in the reconstruction efforts in the conflict-ridden nation.
The majority of the frozen assets, primarily located in Belgium, were subject to sanctions as a response to Moscow's extensive invasion. Brussels estimates that the interest generated from these assets could yield around 3 billion euros annually.
European Commission president emphasized the EU's solidarity with Ukraine, stating, 'Today we transfer 1.5 billion euros in proceeds from immobilized Russian assets to the defense 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.'
This financial support comes in the wake of recent reports that Moscow has regained control of two villages in Eastern Ukraine. The ongoing advancement of Kremlin forces in the eastern and northeastern regions of Ukraine has raised concerns in Kyiv about the potential for further Russian incursions without adequate financial backing.
The EU has outlined that 90% of the allocated funds will be channeled into a specialized fund known as the European Peace Facility, which several EU nations already utilize to seek reimbursement for arms and ammunition supplied to Ukraine. The remaining 10% will be directed to the EU budget, with the programs funded by this portion aimed at enhancing Ukraine's defense industry and facilitating reconstruction efforts, should any member states object to their share being allocated for military purposes.
