As of today, the EU is providing Ukraine with the first instalment of €1.5 billion from frozen Russian assets. Euroclear has made these funds, generated by EU operators and held by central securities depositories (CSDs), available to the Commission. The money will be channelled through the European Peace Facility and the Ukraine Facility to support Ukraine’s military capabilities and reconstruction.
“The EU stands with Ukraine. Today, we transfer €1.5 billion in proceeds from immobilised Russian assets to the defence and reconstruction of Ukraine. 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,” said Ursula von der Leyen, President of the European Commission.
In response to Russia’s brutal and unjustified invasion of Ukraine, the European Union and its Member States have imposed several sets of restrictive measures (sanctions) against Russia. As part of these sanctions, the assets of the Central Bank of Russia held in the EU have been frozen. Any exceptional profits from this situation by EU entities do not belong to Russia and are being held by CSDs. The EU has begun redirecting these profits to Ukraine.
“The first tranche of the windfall profits will provide concrete support on the ground. Notably, with €1.4 billion allocated to the European Peace Facility, we are set to finance the acquisition of priority military equipment, namely air defence, ammunition for artillery – and also through procurement for the Ukrainian defence industry. We are not only providing military support to Ukraine but also made in Ukraine, contributing to Ukraine’s resilience in combating Russia’s war of aggression,” stated High Representative/Vice-President Josep Borrell.
