(MENAFN) The European Union is poised to receive its first installment of revenues generated from Russia's frozen central bank assets within the coming days, according to Josep Borrell, the European Union's top diplomat. This decision marks a significant development in the handling of approximately USD300 billion in Russian sovereign funds immobilized by Western nations since the onset of the Ukraine conflict.

While the European Union has refrained from outright seizing these funds due to legal complexities, a recent agreement among European Union diplomats in May set the groundwork to expropriate the interest accrued on these assets. However, this move has encountered staunch opposition, notably from Hungary, which has consistently opposed Western policies towards Russia.

Russian authorities, including Foreign Ministry spokeswoman Maria Zakharova, have vehemently condemned the European Union 's decision, labeling it as criminal and cynical. Moscow has threatened retaliatory measures against what it perceives as funds appropriated illegally to support Ukraine's military endeavors.

Ahead of the European Union 's Foreign Affairs Council meeting, Borrell confirmed that the initial tranche of funds, amounting to an estimated EUR1.4 billion (USD1.5 billion), will be disbursed to Ukraine, with a total interest summing up to EUR2.5 billion (USD2.7 billion) over subsequent disbursements. Borrell emphasized the European Union 's commitment to navigating legal procedures to circumvent potential obstruction from dissenting member states, ensuring the smooth execution of the fund transfer.

The release of these frozen assets underscores the European Union 's strategic maneuvering in responding to the Ukraine crisis, balancing legal constraints with geopolitical imperatives amid escalating tensions with Russia.

MENAFN27062024000045015687ID1108379910