EU transfers $1.6bn raised from frozen Russian assets to Ukraine
- 26 July, 07:48
The European Union has for the first time, transferred $1.6 to Ukraine using revenues obtained from profits on frozen Russian assets. The profits from Russia’s Central Bank assets will be used to arm Ukraine and fund its post-war reconstruction.
Ninety percent of the financial aid will go tot the fund known as the European Peace Facility to supply Ukraine with urgently needed new weapons and air defence systems amid Russian advances in the east of the country. The remaining ten % of the funds will go to the EU's separate Ukraine Facility fund to be used in Ukraine’s post-war reconstruction, in particular, the reconstruction of energy sector that has been partially destroyed by large-scale Russian attacks.
"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," EU chief 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 emphasized.
Ukrainian Prime Minister Denys Shmyhal thanked the EU for its support. "Thank you von der Leyen and the EU for your steadfast support and this significant contribution to Ukraine's defense and reconstruction," he said. The Ukrainian defense ministry also thanked the EU for the funds, stressing that “this transfer will help us strengthen our defense capabilities.”
Moscow however, has condemned the transfer as “illegal”, with Kremlin’s Spokesperson Dmitry Peskov saying that "This is reason, of course, for thoughtful actions in response to such illegal decisions, which are implemented by the European Union.”
It should be noted that following Russia’s full-fledged invasion of Ukraine in February 2022, the European Union froze around 200 billion euros of Russian Central Bank assets held in the bloc as part of sanctions imposed on Moscow.
