EU utilizes profits from frozen Russian assets to arm Ukraine amid current war
Date
5/22/2024 4:10:56 AM
(MENAFN) The European Union (EU) formally agreed on Tuesday to utilize profits from frozen Russian central bank assets to provide military support to Ukraine, responding to the United States' call for a more robust assistance plan. This initiative aims to generate approximately three billion euros ($3.3 billion) annually, aiding Kiev as the conflict with Russia persists.
Belgium, currently holding the rotating presidency of the EU, announced the decision on the social media platform X, stating, "The European Council confirmed its agreement to use the windfall profits from Russia’s frozen assets to support the self-defense of the Ukrainian army and reconstruction in the context of the war." This decision comes as part of the EU's broader sanctions strategy against Moscow, which began following the Russian invasion of Ukraine in February 2022.
The EU has frozen around 200 billion euros worth of assets belonging to the Russian Central Bank. These assets are held primarily by Euroclear, an international depository organization based in Belgium, which manages about 90 percent of the frozen funds within the EU. According to the EU's plan, 90 percent of the profits generated from these assets will be allocated to a central fund dedicated to purchasing weapons for Ukraine. The remaining 10 percent will be directed towards reconstruction efforts in Ukraine, addressing the extensive damage caused by the ongoing war.
This strategic financial move underscores the EU's commitment to supporting Ukraine's defense capabilities and reconstruction needs while maintaining pressure on Russia through economic sanctions.
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