EU to Allocate €2.5-3 Billion Annually from Frozen Russian Assets for Ukraine Defense

May 8, 2024, 04:20 PM

European Union envoys have reached a tentative agreement to allocate profits from frozen Russian assets to support Ukraine. The funds, estimated to be between €2.5 billion and €3 billion annually, will be used primarily for military aid and defense against Russia's invasion. These profits stem from Russian sovereign assets immobilized in the EU, particularly in Belgium, and are part of an estimated €4.4bn windfall. The decision, still pending legal approval, aims to bolster Ukraine's military capabilities and overall recovery efforts. This financial strategy was agreed upon by EU diplomats in Brussels and involves the European Peace Facility (EPF) to channel 90% of these funds directly for arms purchases.