EU starts using revenues from frozen Russian assets to help Ukraine

EU countries and Ukraine received €1.4 billion from Russian assets. The income is intended to help Kyiv. The Kremlin called the decision on Russian assets a reason for deliberate actions.

Photo: commons.wikimedia.org by Creator:Michael Marcovici is licensed under Commons, the free media repository

Ukraine and EU countries that will supply Kyiv with weapons have begun receiving income from frozen Russian assets. The EU has transferred €1.4 billion of the income for Ukraine, the head of European diplomacy Josep Borrell told reporters.

"We have begun to use the income from frozen Russian assets. They have already been sent to Ukraine and EU members, who will provide more weapons to Ukraine through these funds," he said.

The European Commission announced at the end of July that Kyiv would receive €1.5 billion in aid from frozen Russian assets. Ninety percent of the funds will be used to purchase priority military equipment such as air defense systems and artillery munitions. The rest will be used for the restoration of Ukraine.

Western countries blocked Russian assets worth about $280 billion (€260 billion) as part of sanctions over military actions in Ukraine. More than two-thirds of the amount is stored in the accounts of Belgian depository Euroclear. In 2023 the фыыуеы brought €4.4 billion in net profit. The EU believes that by 2027, the total profit could reach €15-20 billion.

In accordance with its regulations, the EU does not see "unforeseen" profits from managing the assets of the Russian Central Bank as "sovereign assets." Therefore, the mechanism for their transfer to Kyiv does not violate property rights.

The Kremlin said that the decision to transfer the income was illegitimate. Moscow will use it as a reason to elaborate a response.

Switzerland will not follow the example of the EU that announced the allocation of €1.5 billion in aid to Ukraine at the expense of frozen Russian assets, the State Secretariat for Economic Affairs (SECO, a division of the country's Ministry of Economy) said, Blick reports.

Switzerland, unlike the European Union, does not make special income from the frozen assets of the Russian Central Bank, the department said.