FALCON POWERS – The European Union intends to utilize billions of euros in frozen assets from the Russian central bank to finance military aid to Ukraine. After weeks of negotiations, member states have reached a plan that could generate three billion euros this year. On Wednesday, May 8, 2024, the Belgian government announced that the ambassadors of the twenty-seven EU member states had reached an agreement aimed at using the revenues from the frozen Russian balances within the bloc to purchase military assistance for Ukraine.
The Belgian government stated through the “X” platform (formerly Twitter) that “these funds will be used to support Ukraine’s recovery and its military defense in the context of Russian aggression.” The proposal stipulates that 90% of the usable interest income be directed to the European Union fund for financing military equipment and training, while the remaining 10% should be used to provide direct financial aid to Ukraine.
The negotiations were challenging, among other things, because countries like Austria were not willing to participate directly in supplying weapons and ammunition. The agreement reached relates to the use of the interest and other profits from the assets, but not the assets themselves, which will remain frozen.
This move could generate up to three billion euros ($3.23 billion) in aid in the current year alone. According to the European Commission, there are frozen assets belonging to the Russian central bank valued at around 210 billion euros in the European Union. The financial institution Euroclear, based in Brussels, announced that the assets generated approximately 4.4 billion euros in interest in 2023.
🇺🇦 EU ambassadors agreed in principle on measures concerning extraordinary revenues stemming from Russia’s immobilised assets.
👉 The money will serve to support #Ukraine's recovery and military defence in the context of the Russian aggression.
— Belgian Presidency of the Council of the EU 2024 (@EU2024BE) May 8, 2024
On the X platform, European Commission President Ursula von der Leyen praised the political agreement reached, stating, “There will be no stronger symbol and no greater benefit for these funds than making Ukraine and the entire Europe a safer place to live.”
