(MENAFN) On Friday, European Commission President Ursula von der Leyen announced that the European Union would transfer €1.5 billion (USD1.63 billion) in proceeds from frozen Russian assets to Ukraine. This transfer is part of a broader effort by Western countries, which froze nearly USD300 billion in Russian sovereign assets following the outbreak of war in Ukraine in February 2022.

Last month, the G7 and the European Union agreed to utilize the interest earned on these frozen Russian assets to support a USD50 billion loan to Ukraine, aimed at bolstering its defense capabilities. In her announcement on the social media platform X, von der Leyen emphasized the significance of this financial support, stating, “Today we are transferring €1.5 billion of proceeds from frozen Russian assets to the defense and reconstruction of Ukraine. There is no better signal or use of the Kremlin’s money than to make Ukraine and all of Europe a safer place to live.”

Ukrainian Prime Minister Denys Shmyhal expressed gratitude towards the European Union and von der Leyen for their unwavering support. He remarked, “Thank you, von der Leyen, and the European Union for your steadfast support and this significant contribution to the defense and reconstruction of Ukraine. Together, we are turning adversity into opportunity and making Europe safer and more resilient.”

In response, Russia has vowed to take legal action against the transfer. Kremlin spokesman Dmitry Peskov criticized the EU's move as "illegal" and indicated that Russia would take "carefully considered measures" in retaliation. This development highlights the ongoing financial and geopolitical tensions between Russia and the Western nations supporting Ukraine in its conflict. 

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