European Commission proposes to allocate one billion euros from frozen Russian assets to Ukraine's defence industry

The European Commission proposes to allocate one billion euros from the proceeds of frozen Russian assets to develop the Ukrainian defence industry.

Here's What We Know

In addition, these funds will be part of the second tranche aimed at strengthening Ukraine's defence capabilities. This was announced by European Commissioner Didier Reynders at a plenary session of the European Parliament dedicated to supporting Ukraine. The next tranche from the European Union is expected to amount to EUR 1.5 billion, just like the previous one.

"Out of the next tranche, which is also expected to be EUR 1.5 billion, we have proposed to allocate EUR 1 billion for the Ukrainian industry," said Reynders.

The European Commissioner explained that 90% of the first tranche, which came from frozen Russian assets, was channelled through the European Peace Fund to supply Ukraine with priority equipment.

The funds were spent on artillery ammunition, air defence equipment, and partially on direct orders from the Ukrainian defence industry. In particular, €400 million was spent on production. According to the EU Ambassador to Ukraine, Katarina Mathernova, part of this money was spent on Ukrainian wheeled howitzers "Bogdan".

Reynders also reminded that since the beginning of Russia's full-scale invasion, the EU has mobilised about €45.5 billion in military assistance to Ukraine, of which €6.1 billion has been channelled through the European Peace Fund. This allows us to provide Ukraine with a wide range of weapons to repel aggression.

It is worth adding that as a result of international sanctions, the assets of the Central Bank of the Russian Federation have been frozen in the EU. The profits accumulated from these assets are now being used to support Ukraine, according to the decision of the Council of the European Union.

Source: Ukrinform