EU envoys agree to use profits from frozen Russian assets for Ukraine

G7 froze around $300 billion worth of Russian financial assets soon after Moscow’s invasion of Ukraine in 2022

By Reuters
May 09, 2024
Flags of Ukraine fly in front of the EU Parliament building on the first anniversary of the Russian invasion, in Brussels, Belgium February 24, 2023. — Reuters
Flags of Ukraine fly in front of the EU Parliament building on the first anniversary of the Russian invasion, in Brussels, Belgium February 24, 2023. — Reuters

BRUSSELS: Ambassadors from European Union countries agreed on Wednesday to use windfall profits from Russian central bank assets frozen in the EU for Ukraine’s defence, the Belgian government said.

Ministers still need to approve the legal text that will see 90 percent of the proceeds go into an EU-run fund for military aid for Ukraine, with the other 10 percent going to support Kyiv in other ways, four EU diplomatic sources said.

The Group of Seven countries (G7) froze around $300 billion worth of Russian financial assets soon after Moscow’s invasion of Ukraine in 2022. Since then, the EU and other G7 countries have debated how and whether to use the funds to help Ukraine.

“The money will serve to support ... Ukraine’s recovery and military defence in the context of the Russian aggression,” Belgium, which holds the EU presidency until the end of June, said in a post on X.

The United States has proposed seizing the assets in their entirety, but Europe has balked, citing risks to the euro and massive legal repercussions. More recently, Washington has pushed for using the assets as collateral to provide loans for Ukraine.