Espreso. Global

EU gears up to use funds from Russia's frozen assets to produce weapons for Ukraine

25 May, 2024 Saturday
10:48

The EU is preparing a decision to direct part of the profits from frozen Russian sovereign assets to the production of weapons for Ukraine using Ukrainian facilities

client/title.list_title

This was reported by Radio Liberty, citing a senior official in the European Council who was not authorized to comment to the media.

“For the first time, we will have cash available immediately. We hope to receive these funds in July, so we decided not to use them to reimburse member states, but to use them to finance procurement in Europe or outside Europe or also in Ukraine. And we would like to suggest that member states use some of these excess profits to finance the defense industry in Ukraine,” the source said.

The European Council official explained that in this way the EU expects to respond to Ukraine's request for assistance in financing the defense industry, voiced on May 6 at the EU-organized defense forum in Brussels.

Ukraine's Minister of Strategic Industry Oleksandr Kamyshin said at the forum that Ukraine's defense industry could produce an additional $10 billion worth of products if it had proper funding.

The first tranche of proceeds from frozen Russian sovereign assets, which the EU is to receive in July, will amount to about €1.6 billion.

What is known about the confiscation of Russian assets

On November 30, the US Senate introduced a bill to confiscate Russian assets. By January 11, the Biden administration backed the idea, supporting the transfer of Russian Federation assets to Ukraine.

Russia warned that confiscating its frozen assets could cost the West at least $288 billion in lost assets and investments. Moscow also threatened retaliation.

On January 23, Belgium's ambassador to the US, Jean-Arthur Regibeau, stated that Western countries should collectively decide on confiscating frozen Russian assets, most of which are held in Brussels' Euroclear.

The next day, the US Senate committee approved a bill to confiscate Russian assets and transfer them to Ukraine.

By January 30, the Committee on Political Affairs of the Parliamentary Assembly of the Council of Europe adopted a draft resolution to confiscate frozen Russian assets and allocate them to a fund for Ukraine's restoration.

Europe holds €191 billion of Russia's €260 billion in frozen foreign assets. The €4.4 billion profit from these assets in 2023 is intended for Ukraine.

On February 12, the Council of the EU decided on a mechanism to use profits from frozen Russian assets in the EU for Ukraine.

On May 7, German Chancellor Olaf Scholz supported using about 90% of profits from frozen Russian assets for Ukraine's defense needs.

Finally, on May 8, EU ambassadors agreed to direct revenues from frozen Russian assets to Ukraine’s reconstruction and defense against the aggressor.

The European Commission says Ukraine will receive the first payment in July 2024.

The G7 is discussing the possibility of a loan for Ukraine against the proceeds of frozen Russian assets.
Tags:
Read also:
  • News
2024, Monday
24 June
16:30
North Macedonia's new government vows support for Ukraine
16:10
Russian forces use chemical munitions against Ukrainian army 715 times in May
15:51
Ukraine may receive €2.5 billion in profits from Russian assets - EU's Borrell
15:28
Ukraine assesses risk of Belarusian army's sudden inspection near border
15:12
EU announces new 14th package of sanctions against 116 Russian individuals and entities
14:55
German Federal Council President Schwesig arrives in Kyiv
14:40
OPINION
ECtHR begins delivering judgments in cases against Russia
14:17
Exclusive
Exposions in Sevastopol is another reminder that Crimea is Ukraine - Ukrainian MP
13:59
Why Russia’s attacks on Ukraine’s energy infrastructure won’t help it win war
13:31
Ukraine's General Staff reports 62 firefights, active Russian attacks in Siversk and Pokrovsk sectors
13:10
Attacks on Russian refineries won't shift war's tide, but will have military impact – Ukraine's spy chief
12:48
Exclusive
Russian troops conduct small group assaults in Horlivka direction - Ukrainian serviceman Iyevlyev
12:30
OPINION
Russia will win only if Ukrainians give it this victory
12:10
Exclusive
Pokrovsk direction is top priority for Russian army - military expert Zgurets
11:58
Updated
Russian army attacks Odesa with missiles, causing casualties
11:45
US, South Korea, and Japan condemn North Korea's military ties with Russia, urge return to negotiations
11:05
Ukraine to receive first batch of ammunition under Czech initiative by late June
10:44
Russia relocates Tu-95MS bombers at Engels airfield every five hours fearing Ukraine’s attacks
10:25
Ukrainian forces deny Russia seizing Novooleksandrivka in Pokrovsk direction
10:03
Russia places military facilities near civilian areas in Crimea: ISW explains why
09:35
Russia loses 12 tanks, 51 artillery systems and 1,300 soldiers in one day of war in Ukraine
2024, Sunday
23 June
21:23
Interview
Main task of next NATO Secretary General is to expand Alliance - Polish politician
20:59
India imports record amount of oil from Russia in May – media
20:40
Russia responds to Ukrainian strike on Crimea
19:59
Russian troops intensify advances in Kupyansk and Pokrovsk directions - Ukraine's General Staff
19:46
US support allows Ukraine to strike into Russian territory, disrupting Kharkiv offensive - media
18:59
Exclusive
Ukrainian general assesses chance of Defense Forces' counteroffensive
18:25
Updated
Ukrainian forces strike Russian motorized rifle regiment’s command post: video
17:35
South Korea to lift any restrictions on aid to Ukraine if Russia provides precision weapons to North Korea
16:31
Explosions rock Sevastopol: Russia claims downing 4 ATACMS missiles, 2 dead
15:50
Vietnam calls U.S. strategic partner after Putin's visit
15:05
Work or go home: German opposition urges deportation for unemployed Ukrainian refugees
14:30
Intensification of Russian attacks in Donetsk region may indicate start of summer offensive – ISW
14:03
Partisans in Russia burn relay box on Rostov-on-Don to Mariupol railway
13:32
OPINION
EU membership negotiations: Choice between two evils
12:50
Ukraine’s intelligence reports increase in Russian servicemen surrendering through I Want to Live Project
12:21
Russian troops attack Kyiv region with missiles, injuring civilians
11:50
Exclusive
Why Russia uses Sea of Azov to launch Kalibr missiles – military insight
10:59
Russian army loses 15 tanks, 61 artillery systems and over 1,200 soldiers in one day of war in Ukraine
10:33
Updated
Russia attacks Kharkiv with guided bombs four times, causing casualties
More news