The countries of the European Union announced on Tuesday that they have reached an agreement to use the Profits generated by frozen Russian assets to provide military support to Ukraine and help rebuild the country from the ravages of war.
The EU is withholding some 210 billion euros ($225 billion) in Russian central bank assets, most frozen in Belgium, in retaliation for Moscow’s war against Ukraine. Calculate that the interest on that money could provide about 3 billion euros ($3.3 billion) each year.
Ukraine is desperate for weapons and ammunition as Russia asserts its military advantage.
EU headquarters said 90% of the money would be put into a special fund known as European Peace Fund which many EU countries already use to obtain reimbursement for weapons and ammunition they send to Ukraine.
The remaining 10% would go to the EU budget. The programs financed with this money would help strengthen the Ukrainian defense industry or help the country’s reconstruction, in case some countries objected to their share being used for military purposes.
A small group of Member States, Hungary, for example, refuses to supply weapons to Ukraine.
Officials have said the first portion of the funds could be available in July.
This Monday, US Treasury Secretary Janet Yellen noted that it is “vital and urgent” that the United States and its allies find a way to take advantage of the immobilized Russian assets to help Ukraine.
Excerpts from his speech, which was delivered on Tuesday in Frankfurt, come as financial leaders from the Group of Seven industrialized countries meet later this week.
G7 allies are excited about a U.S. plan that could raise around $50 billion for Ukraine, the U.S. government reported Monday. Financial Times.
The plan involves a G7 loan backed by future earnings of around $350 billion from Russian assets who were immobilized after Moscow’s invasion of Ukraine, the report added.
The US plan will serve as a basis for the G7 discussions, he confirmed to the agency AFP a source of the Italian Treasury.
For Italy, which holds the presidency of the G7 This year, the proposal is an “interesting way forward” and should be explored further.
However, any decision needs the support of the European Union, a solid legal basis and will only be announced when G7 leaders meet. in Junesaid the source.
If we stay still while dictators violate territorial integrity and disregard the rules-based international order, they have no reason to stop at their initial objectives,” Yellen said in excerpts from the speech.
“I think it is vital and urgent that we collectively find a way to unlock the value of Russian sovereign assets tied up in our jurisdictions for the benefit of Ukraine,” he said.
Yellen added that “this will be a key topic of conversation during the G7 meetings this week.”
Asked about the details of the $50 billion aid package, a senior U.S. Treasury official told reporters Friday that “we are certainly trying to move forward on this issue,” without committing to specifics.
Yellen, in prepared remarks, said countries “must continue to crack down on Russian sanctions evasion, including through third parties.”and sensitive goods originating in the United States and Europe.”
(With information from AP)
