EU allocates €400 million from frozen Russian assets for Ukrainian weapons, more to come — EU Ambassador

Ambassador of the European Union to Ukraine Katarina Mathernova shared the information, Interfax-Ukraine reports.

“Most notable, EUR400 million has been given directly to the Ukrainian industry because of the lack of capacity within the EU that you mentioned. The Ukrainian defense industry can also produce faster and cheaper, and there are the added benefits of cutting out international logistics and transport channels, and supporting the Ukrainian economy,” Mathernova said.

She reminded that Denmark was the leader in this process. It was through Denmark that these funds were directed to the Ukrainian defense industry.

“Denmark was the first, and that’s why we turned to them to help us with the channeling of the proceeds from the frozen assets, in total EUR400 million for the purchase of Ukraine-sourced weaponry. And there will be more,” the ambassador emphasized.

Katarina Mathernova added that she could not say how much the allocation of funds for the Ukrainian defense industry will increase, as the decision has not yet been finalized. At the same time, she assured that “it will be more than it is now.”

“Of the 18 Bohdan [wheeled self-propelled howitzers] that they have purchased, ⅔ were financed by the EU from the proceeds of the Russian assets,” Mathernova said.

She also expressed hope that other countries will follow suit and “will use the incredible innovation that's happening in Ukraine, in this area, as a platform for financing.”

What is known about the frozen Russian assets

On November 30, the U.S. Senate introduced a bill to confiscate Russian assets. On January 11, the Biden administration supported the confiscation of Russian assets for transfer to Ukraine.

At the same time, Russia estimated that the West could lose assets and investments worth at least $288 billion if it confiscated frozen Russian assets to help rebuild Ukraine, and said Moscow would retaliate.

On January 23, Belgian Ambassador to the United States Jean-Arthur Regibeau said that Western countries should make a collective decision to confiscate frozen Russian assets, most of which are stored in the Brussels-based Euroclear settlement center.

Later, a U.S. Senate committee approved a bill to confiscate Russian assets and transfer them to Ukraine, and on January 30, the Political Affairs Committee of the Parliamentary Assembly of the Council of Europe adopted a draft resolution that provides for the confiscation of frozen Russian assets and their transfer to a new fund for the restoration of Ukraine.

Later, it became known that €191 billion out of €260 billion of Russia's frozen foreign assets were stored in Europe, with a profit of €4.4 billion in 2023. This profit was supposed to be transferred to Ukraine.

On February 12, the EU Council decided to regulate the future mechanism for using profits from frozen Russian assets in the EU in favor of Ukraine.

On May 8, EU ambassadors agreed to allocate the proceeds of frozen Russian assets to rebuild Ukraine and to defend it from the aggressor.

The European Commission said that Ukraine would receive the first payment in July 2024.

The G7 discusses the possibility of a loan to Ukraine against the proceeds of frozen Russian assets.

On June 24, EU High Representative for Foreign Affairs and Security Policy Josep Borrell said that the EU Council had agreed to provide Ukraine with €1.4 billion in contingency funds from frozen Russian assets.