BRUSSELS: The European Union (EU) on Tuesday formally approved using the profits from frozen Russian central bank assets to support Ukraine’s military efforts, as the United States pushes for a more ambitious plan.
This decision, ratified by the EU Council, is expected to provide crucial financial assistance to Kyiv, amounting to approximately 3 billion euros ($3.3 billion) annually.
Belgium, currently holding the bloc’s rotating presidency, announced the EU’s endorsement of utilizing windfall profits from immobilized Russian assets to strengthen Ukraine’s military defenses and contribute to post-conflict reconstruction efforts.
The EU’s punitive measures, implemented in response to Russia’s military intervention in Ukraine in February 2022, included the freezing of approximately 200 billion euros worth of Russian central bank assets held within the bloc. Notably, the bulk of these funds—around 90 percent—are administered by the international deposit organization Euroclear, headquartered in Belgium.
Under the approved EU scheme, a significant portion of the interest accrued from the frozen assets—90 percent—will be channeled into a central fund designated for the procurement of weapons and military equipment for Ukraine. The remaining 10 percent will be allocated towards supporting reconstruction efforts in the war-torn region.
Despite the EU’s endorsement of the initiative following months of legal deliberations, the proposal faces competition from a more expansive plan advocated by the United States and Britain within the framework of the Group of Seven (G7). Washington and London are championing a proposal to issue a G7 loan amounting to approximately $50 billion for Ukraine, backed by future profits derived from frozen Russian assets held globally.
