(Finance) – TheEuropean Union has made available to theUkraine The first payment of 1.5 billion euros generated by immobilized Russian assets following the invasion ordered by Putin and the resulting sanctions. These are extraordinary revenues generated by EU operators and held by central securities depositories (CSDs) from immobilized Russian sovereign assets, which were made available by Euroclear to the Commission as a first tranche on 23 July.
The money will now be channeled through theEuropean Peace Facility andUkrainian Facility to support Ukraine’s military capabilities and to support the reconstruction of the country, the statement said.
The immobilization of the assets of the Central Bank of Russia is the result of EU sanctions against Russia, adopted following the war of aggression against Ukraine. The extraordinary revenues generated in this context by EU operators do not belong to Russia and are held by CSDs. The EU has now started to channel these revenues to Ukraine.
“The EU stands with Ukraine – commented Ursula von der LeyenPresident of the European Commission – Today we are transferring €1.5 billion of the proceeds of immobilized Russian assets to the defense and reconstruction of Ukraine. There is no better symbol or use for the Kremlin’s money than to make Ukraine and all of Europe a safer place to live.”
“The first tranche of extraordinary profits will provide a concrete support on the field – commented the High Representative of the Union for Foreign Affairs, Josep Borrell – In particular, with €1.4 billion allocated to the European Peace Facility, we are ready to finance the acquisition of priority military equipment, namely air defense, artillery ammunition, and also through procurement for the Ukrainian defense industry. We are not only providing military support to Ukraine, but also “made in Ukraine”, contributing to Ukraine’s resilience in the fight against Russia’s war of aggression”.
Currently only Euroclear Belgium falls within the scope of the Council Regulation laying down rules on the management of fixed assets. The next request for financial contribution by the CSD concerned will take place in March 2025.