Russia has around 200 billion euros blocked in the EU. The bloc intends to use the proceeds from this reserve to reinforce Ukraine’s defense and finance the country’s reconstruction. The member countries of the European Union (EU) have reached an agreement to direct profits from blocked Russian assets to Ukraine, it was announced on Wednesday (08/ 05) the rotating presidency of the bloc of 27 countries, momentarily occupied by Belgium.
The President of the European Commission, Ursula von der Leyen, and the President of Ukraine, Volodimir Zelenski
Photo: DW / Deutsche Welle
In a publication on network “This money will serve to support the recovery and military defense of Ukraine in the context of Russian aggression,” said the Belgian leaders.
The use of Russian assets blocked in the EU to finance Ukraine has been the subject of debate since the first months of the war launched by the Kremlin. The total amount of Russian assets frozen in EU countries is estimated at around 200 billion euros (R$1 trillion) and has been generating annual profits of around 2.5 billion euros (R$13.6 billion).
Since 2022, Ukraine has been asking the EU to grant Kiev access to all blocked assets. Russia denounces the confiscation as a “theft”. Fearing an avalanche of legal complaints, the EU had been postponing a decision and preferred a plan that involved only the profits generated by the amounts originally confiscated.
The head of EU diplomacy, Josep Borrell, proposed that 90% of these resources be directed to the European Peace Support Fund (FEAP), which the bloc uses to finance the purchase of weapons for Ukraine. The remaining 10% would be used to finance the Ukrainian defense industry and the reconstruction of the country.
If definitively put into practice, the measure could direct up to 3 billion euros in aid to Ukraine this year alone – considering the total amount accumulated since the start of the war and taxes taken into account. The first amount should be released in July.
Around 90% of the 200 billion euros in Russian funds frozen in the EU are controlled by the international deposit organization Euroclear, based in Belgium. As part of the deal announced on Thursday, Euroclear’s fee for managing the assets was also reduced, from 3% to 0.3% of profits, diplomats said.
On Network X, European Commission President Ursula von der Leyen welcomed “today’s political agreement on our proposal to use profits from frozen Russian assets for Ukraine” and said that “there could not be a stronger or better symbol use of that money than to make Ukraine and all of Europe a safer place to live.”
(AFP, dpa)
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