EU transfers 1.5 billion euros from frozen Russian assets to Ukraine

BRUSSELS: The European Union will transfer 1.5 billion euros in proceeds from frozen Russian assets to Ukraine, European Commission President Ursula von der Leyen said on Friday.

Western countries blocked around $300 billion worth of sovereign Russian assets after Moscow sent troops into Ukraine in February 2022.

Last month the Group of Seven major democracies and the EU agreed to use interest earned from the frozen Russian assets to support a $50 billion loan for Ukraine, aiding its defence against Moscow's invasion. Russia has vowed legal action.

"Today we transfer 1.5 billion euros in proceeds from immobilised Russian assets to the defence 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," von der Leyen said on social media platform X.

Ukrainian Prime Minister Denys Shmyhal thanked the EU.

"Thank you von der Leyen and the EU for your steadfast support and this significant contribution to Ukraine’s defence and reconstruction. Together, we are turning adversity into strength and building a safer, more resilient Europe," he said.

EU member states have been discussing options to extend the renewal period of sanctions on Russian central bank assets in order to secure the G7 loan for Ukraine, according to an EU draft document and statements from diplomats, Reuters reported on Wednesday.