EU to provide €1.5bn monthly to Ukraine from Russian assets in the West

President of the European Council Antonio Costa. Source: AP

At a joint press conference with President Volodymyr Zelenskyy, European Council President Antonio Costa said that the European Union plans to provide Ukraine with €1.5 billion a month starting in January 2025.

Here's What We Know

"This month, the European Union will provide Ukraine with an additional €4.2 billion to support Ukraine's budget. In addition, starting next month, we plan to provide €1.5 billion in monthly assistance throughout the year," he said.

The President of the European Council said that the funds received from the proceeds of frozen Russian assets could be used, among other things, for military purposes. He also said that in two weeks, Ukrainian President Volodymyr Zelenskyy would visit Brussels to attend a meeting of the European Council. In addition, the EU is preparing the 15th package of sanctions against Russia

Since the beginning of the full-scale invasion in 2022, the Bank of Russia's assets worth about €260 billion have been blocked abroad, of which more than two-thirds are frozen in the EU. The Belgian company Euroclear holds about €191 billion belonging to the Russian Central Bank. In 2023, it earned approximately €4.4 billion from these assets, according to a financial report cited by the Financial Times.

Frozen Russian assets. Illustration: Word and deed

A representative of the US Treasury Department noted that even in the event of confiscation, Ukraine would not be able to receive all of these funds immediately.

Ukraine may receive the first tranche of proceeds from the frozen assets of the Russian Central Bank in July 2024, if the EU leadership reaches an agreement.

Source: Telegram