(MENAFN) During a press conference following a meeting of European Union Council foreign ministers, Josep Borrell, the European Union’s foreign affairs chief, announced the approval of transferring EUR1.4 billion (USD1.5 billion) from frozen Russian assets to Ukraine as military assistance. This decision marks a significant step in utilizing windfall profits generated by Russian assets immobilized within the European Union due to sanctions imposed over the Ukraine conflict.
The European Union has frozen approximately USD300 billion in Russian sovereign assets, with a substantial portion amounting to USD280 billion held within European Union jurisdictions. Borrell clarified that the EUR1.4 billion allocated will not involve the actual transfer of Russian assets themselves but rather the profits accrued from these frozen funds. He emphasized the swift deployment of these funds, with EUR1.4 billion set to be available within the next month and an additional EUR1 billion expected by year’s end.
The funds are earmarked for purchasing air defense systems, ammunition, and supporting Ukraine’s defense industry, underscoring the European Union’s commitment to bolstering Ukraine’s defense capabilities amid ongoing conflict. Borrell also addressed earlier proposals to utilize interest earned on frozen Russian assets for acquiring weapons, acknowledging initial resistance from Hungary. Despite Hungary’s objections, Borrell clarified that the decision to allocate funds for Ukraine’s defense cannot be blocked by Hungary, as it did not participate in the decision-making process.
This allocation reflects the European Union’s strategic response to the Ukraine crisis, leveraging economic measures to support Ukraine’s defense efforts while navigating diplomatic challenges within the bloc.
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