EU Allows Frozen Russian Assets to Flow into Ukraine’s Defense Amid Ongoing Conflict with Russia

On Wednesday, the EU ambassadors agreed to allow the proceeds of frozen Russian assets to flow into the defense of Ukraine. It was decided that 90 percent of the money should go to the European Peace Facility for military support, while ten percent should flow into the budget of the Ukraine Facility.

The EU Commission has stated that approximately 210 billion euros from Russia’s central bank have been frozen in the EU. The Council of Economics and Finance Ministers is expected to approve this agreement next week, with funds being sent to Ukraine as early as July. The amount of funds allocated per year is estimated at 2.5 to 3 billion euros. Of these funds, 90 percent will be used for weapons and ammunition for Ukraine, and 10 percent will go towards the defense industry and reconstruction efforts.

In Austria, there has been a significant decrease in frozen Russian assets from 2 billion euros at the end of 2022 to currently 1.5 billion euros due to exchange rate fluctuations and exemptions made by the Directorate of State Security and Intelligence (DSN). The National Bank (OeNB) has also released frozen assets due to these exemptions.

The EU ambassadors will also discuss the implementation of sanctions against Russia through a 14th sanctions package, which includes restrictions on imports of liquid gas and adding other individuals and organizations to the sanctions list. This agreement on using frozen Russian assets and implementing sanctions aims to provide support for Ukraine and deter further aggression from Russia.

Overall, this decision marks a significant step forward in providing aid to Ukraine during their ongoing conflict with Russia.