THE HAGUE, Netherlands (AP) — The European Union announced Friday that it has made 1.5 billion euros ($1.6 billion) available in support of Ukraine, the first tranche of money generated from profits on frozen Russian assets.
In May, the 27 EU member states have reached an agreement to use interest on about 210 billion euros ($225 billion) of Russian central bank assets for military aid to Ukraine and reconstruction efforts in the war-torn country.
The money, most of which is held in Belgium, was frozen as part of sanctions packages in retaliation for Moscow’s large-scale invasion. Brussels estimates that the interest on the assets could generate around €3 billion a year.
“The EU stands with Ukraine. Today we are transferring €1.5 billion in proceeds from immobilized Russian assets to the defense and reconstruction of Ukraine. There is no better symbol or use for the Kremlin’s money than to make Ukraine and the whole of Europe a safer place to live,” European Commission President Ursula von der Leyen said in a statement.
The move will take place a few days later Moscow announced it had recaptured two villages in eastern Ukraine. A recent Kremlin attack in eastern and northeastern Ukraine has led to incremental gains, and Kiev worries that Russia could advance further without financial support.
EU headquarters said 90% of the money would be put into a special fund known as the European Peace Facility, which many EU countries already use to get reimbursements for arms and ammunition they send to Ukraine.
The remaining 10% would be put into the EU budget. The programs financed with this money would help strengthen Ukraine’s defense industry or help with reconstruction, should some countries object to their share being used for military purposes.
