Brussels, July 26, 2024, The Europe Today: EU announced on Friday that it has made available the first €1.5 billion ($1.6 billion) payout of interest earned on seized Russian assets to Kiev to assist in purchasing weapons.
This decision follows extensive deliberations among EU and G7 nations about the utilization of nearly $300 billion belonging to Russia’s central bank, which was immobilized as part of Ukraine-related sanctions. Brussels estimates that the interest on these seized assets could generate around €3 billion annually.
European Commission President Ursula von der Leyen stated on X (formerly Twitter), “Today we transfer €1.5 billion in proceeds from immobilized Russian assets to the defense and reconstruction of Ukraine.”
The Kremlin has strongly criticized the move. Kremlin spokesperson Dmitry Peskov condemned the “illegal decisions” made by EU officials and vowed “thought-through” retaliatory measures in line with Russia’s national interests. “Of course, these steps by the European Commission will not remain unanswered,” Peskov said on Friday.
In May, the EU approved a scheme to use the interest earned on the frozen assets to support Ukraine’s recovery and military efforts. Under the agreement, 90% of the proceeds are expected to go into an EU-run fund for Ukrainian military aid, with the remaining 10% allocated for other forms of support to Kiev.
A statement published on the EU’s official website on Friday asserted that the proceeds from the confiscated funds “do not constitute sovereign assets.” The statement explained, “These revenues do not have to be made available to the Central Bank of Russia under applicable rules, even after the discontinuation of the transaction prohibition (immobilization).”
In June, the EU Foreign Affairs Council announced plans to allocate windfall profits from immobilized Russian funds to Ukraine, with the first tranche earmarked for ammunition and air-defense systems. An additional €1 billion is expected to be transferred by the end of the year.
Moscow has denounced Western measures, arguing that military assistance to Ukraine will only prolong the conflict, and any actions against its assets amount to “theft.” The Kremlin has warned that “illegal attempts to rob” Russia will inflict significant damage on the international financial system.
