For several months now, the West has been discussing how to transfer blocked Russian assets to Ukraine. An agreement on this issue has recently been reached.
Last week, EU ambassadors finally reached an agreement on transferring the proceeds from frozen Russian assets to assist Ukraine.
Another additional level of support
A high-ranking EU official shared details of the agreement off the record. According to him, 90% of these funds will be allocated to the European Peace Fund, which provides military assistance to Ukraine. The remaining 10% will be directed towards reconstruction and rehabilitation efforts.
This is yet another additional level of support for Ukraine, estimated to be around 3 billion euros per year,” said the high-ranking diplomat.
The decision will now need to be approved at the ministerial level. After the agreement is finally signed, Ukraine can expect the first tranche of assistance as early as July of this year.
In diplomatic circles, it is noted that Belgium, which was the first to decide to transfer taxes from Russian assets, is urging other European countries with blocked Russian funds to follow its example.
Transferring frozen Russian assets to Ukraine: the latest news
- Earlier reports suggested that some European Union countries may not agree to transfer proceeds from Russian assets to arm Ukraine. A final decision will be made in June.
- The idea that the funds may not be provided for arming Ukraine arose on the eve of the meeting of the EU’s 27 envoys, at which Belgium hopes to conclude an agreement on unlocking funding for Ukraine.
- Then Olaf Scholz announced that about 90% of the proceeds from frozen Russian assets should be allocated to arm Ukraine.
- Currently, around 300 billion dollars of Russian assets are held in the West. Confiscation of these funds was previously considered but rejected due to illegality.
- Recently, EU High Representative for Foreign Affairs and Security Policy Josep Borrell called on the EU Council to allocate the proceeds from Russian assets to Ukraine. According to him, the money should be used to purchase weapons.
