EU Transfers Initial $1.6 Billion from Seized Russian Assets to Ukraine; Russia Threatens Retaliation

July 26, 2024 TruthUSA

European Union officials stated on Friday that the initial part of funds from frozen Russian assets has been transferred to aid Ukraine in resisting Moscow’s invasion, while the Kremlin warned of retaliation for what it considers theft of its sovereign property.

European Commission president Ursula von der Leyen announced on July 26 that $1.6 billion in interest earned from holding about $225 billion in frozen Russian central bank assets has been allocated to Ukraine, as Kyiv appeals for increased Western assistance.

“The EU stands with Ukraine,” Ms. von der Leyen said. “Today we transfer 1.5 billion euros in proceeds from immobilised Russian assets to the defense and rebuilding of Ukraine. There is no better use for the Kremlin’s money than to enhance the safety of Ukraine and all of Europe.”

In May, the EU’s 27 member states agreed to utilize the interest from the frozen Russian assets for military aid to Ukraine and reconstruction efforts in the war-torn country. The assets were seized as part of sanctions imposed on Moscow in response to its invasion.

EU officials estimate that the interest from the frozen assets, mostly held in Belgium, could reach around $3 billion per year.

The European Commission stated that, as per the plan approved in May, 90% of the proceeds from frozen Russian assets will be allocated for military support to Ukraine through the European Peace Facility, while 10% will be used for reconstruction and other aid efforts through the EU budget.

Despite no official acknowledgment from Kyiv regarding the initial portion of the promised proceeds from the frozen Russian assets, Mykhailo Podolyak, advisor to Ukraine President Volodymyr Zelenskyy, shared a statement on social media emphasizing the need to utilize financial tools to punish Russia and acquire weapons to weaken the aggressor’s capabilities.

“To dismantle the war infrastructure, we must increase the resources that [Russia] is losing due to its actions,” he stated, highlighting the necessity to enhance Ukraine’s air defense system to achieve tactical victories and compel Moscow to engage in negotiations.

On the other hand, the Kremlin expressed opposition to the EU’s announcement of using proceeds from frozen Russian central bank assets to assist Ukraine in the conflict.

Kremlin spokesperson Dmitry Peskov informed reporters on Friday that the EU’s action was deemed “illegal,” and Russia would respond with calculated measures.

“The European Commission’s actions will not go unanswered,” he added.

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