The European Union is using 1.4 billion euros from the proceeds of frozen Russian assets to aid Ukraine, the European Commission announced on 5 August.
“Russia must pay for the destruction it has caused. And we are using funds derived from frozen Russian assets to ensure this happens. We are providing Ukraine with a further €1.4 billion from these funds. This will support Ukraine’s continued resistance to Russia’s illegal war,” said European Commission President Ursula von der Leyen.
Ukrainian Prime Minister Serhiy Koretskyi thanked the European partners and stated that the funds would be used “to strengthen our defence and reinforce the resilience of our state”.
The European Commission noted that these funds come from assets of the Central Bank of Russia that have been frozen in accordance with EU sanctions imposed in response to Russia’s aggression against Ukraine.
The EU specifies that 95 per cent of the funds will go towards supporting Ukraine through the Ukraine Loan Cooperation Mechanism (ULCM), whilst the remaining 5 per cent will be channelled through the European Peace Fund (EPF).
This is not the first time such funds have been transferred to Ukraine. The European Commission previously announced that it was transferring €1.4 billion to Ukraine in April this year.
Around $300 billion of Russian sovereign assets have been frozen in Europe. The majority of these funds, around €190 billion, are held at the Euroclear international depository in Belgium. In the UK, approximately 30 billion euros of Russian assets have been frozen, whilst in France the figure stands at 19 billion euros.