EU released 1.5 billion from profits of frozen Russian assets to arm Ukraine

Brussels – Green light for military support to Ukraine with money from Moscow. Today (July 26), the EU paid the first 1.5 billion euros generated from the proceeds of Russian assets frozen on EU soil. “There is no better symbol or use for the Kremlin’s money than to make Ukraine and all of Europe a safer place to live,” rejoiced European Commission President Ursula von der Leyen.

After the agreement between member countries in May, the last missing piece was for Euroclear, a Belgian clearing company that holds most of the Russian Central Bank’s securities, to make available a first tranche of the proceeds. The European Commission calculates that, depending on interest rates, it can guarantee Kyiv about 3 billion a year through the profits of frozen Russian assets: assets and reserves totaling about 210 billion euros.

This first 1.5 billion tranche — and the next ones — will now be channeled through the European Peace Fund and to the Ukraine Facility to support Ukraine’s military capabilities and the country’s reconstruction. The EU 27 agreed that 90 percent of the resources would go to military assistance and the remaining ten to Ukraine’s reconstruction. However, they reserved the option to review the allocation as early as January 2025.

“The first tranche of the windfall profits will provide concrete support on the ground,” confirmed EU High Representative for Foreign Affairs Josep Borrell. In particular, the EU will finance “the acquisition of priority military equipment, namely air defense, ammunition for artillery – and also through procurement for the Ukrainian defense industry.”