The European Union announced on Friday that $1.6 billion, or 1.5 billion euros, had been allocated to help Ukraine.
This represents the first significant profit from Russian frozen assets.
In May, EU members decided to support Ukraine and finance its post-conflict reconstruction with billions of euros seized from the Russian central bank.
The EU froze approximately 200 billion euros of Russian central bank assets held within the bloc. The move was part of the penalties imposed on Moscow for invading Ukraine in 2022.
Euroclear, an international deposit organisation established in Belgium, holds approximately 90% of the cash frozen in the EU.
“The EU supports Ukraine. “Today, we transfer 1.5 billion euros in proceeds from immobilised Russian assets to Ukraine’s defence and reconstruction,”
EU leader Ursula von der Leyen said in a statement. “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,” she made clear.
The money imwas gotten from the income produced by the frozen Russian funds, not the cash themselves, which remain locked away in Moscow.
According to Brussels, 90% of the money would go to the European Peace Facility, a central fund used to pay for weaponry for Ukraine.
The remaining 10% would be directed to the EU’s separate Ukraine Facility, which would help with the country’s restoration. Ukrainian Prime Minister Denys Shymgal praised the EU for their assistance.
What they’re saying
“Thank you von der Leyen and the EU for your steadfast support and this significant contribution to Ukraine’s defence and reconstruction,” he commented on social media.
“We are grateful to the EU for taking this important move. “This transfer will help us strengthen our defence capabilities,” the Ukrainian defence ministry stated.
Final Thoughts
This allocation serves both symbolic and strategic purposes. By using funds linked to Russia to support Ukraine, the EU sends a clear message of solidarity with Ukraine and condemnation of Russia’s actions.
It reinforces the EU’s commitment to supporting Ukraine in its defense efforts and post-conflict reconstruction.
