EU Agrees to Transfer Funds from Russian Frozen Assets to Ukraine for Defense and Reconstruction

Permanent representatives of EU member states agreed on May 8 to transfer funds from additional taxable profits of Russian frozen assets to Ukraine, which is the last step to implement this mechanism.

Source: “European reality” regarding the Belgian Presidency of the Council of the EU

Details: At Wednesday’s meeting, EU ambassadors agreed in principle on “measures for emergency revenue from Russia’s immovable assets.”

“The money will be used to support the reconstruction and defense of the Ukrainian military against Russian aggression,” the Belgian president said.

The decision of the permanent representatives must still be finalized by the Council of the European Union.

What is ahead: In February The EU has agreed another important step in his plan to use Russia’s frozen assets, related to legal rules for storing wind profits from assets.

The EU’s top diplomat, Josep Borrell, put forward a plan in March to redirect interest earned on Russia’s frozen assets to Ukraine. According to the plan, 90% of the money should go to a fund that will be used to cover military costs for Ukraine.

Read more about the Brussels plan in the article Slow unfreeze: what impact will the EU decision have on seized Russian assets?.