Ukrainian army to be financed at Russia's expense: EU approves confiscation of profits from Russian assets

The EU Council has approved the confiscation of profits from Russia's assets in favor of Ukraine. It is expected that this will allow the country to receive 2.5-3 billion euros in 2024 alone, 90% of which will go to the needs of the army.

This was reported by the Permanent Mission of the Czech Republic to the EU. They noted that the remaining 10% will be used to rebuild Ukraine.

"The EU Council has approved an agreement on the use of profits from the frozen assets of the Central Bank of the Russian Federation in favor of Ukraine. The annual income is expected to be between 2.5 and 3 billion euros," the statement said.

For its part, Bloomberg reminded that after Russia's full-scale invasion of Ukraine, the G7 countries froze about $280 billion worth of Russian assets. Moreover, more than two-thirds of the assets are in the EU, in particular in the Belgian depository Euroclear, "where they have brought about 3.9 billion euros in net profit since last year."

Germany agrees to use Russia's frozen assets in favor of Ukraine

At the same time, the German authorities have decided to support the US plan to use the profits from frozen Russian assets to finance Ukraine, in particular, to provide a $50 billion loan. This could be a decisive step that will bring Washington and its allies closer to providing a new substantial aid package to the country that is under full-scale attack.

According to Bloomberg, the G7 is expected to discuss the issue this week. However, the decision will not be made until mid-June.

"German officials are ready to support the U.S. plan to use future proceeds from frozen Russian assets to help Ukraine. ... What is at stake is whether the Ukrainian government will be able to remain financially viable until 2025," the statement said.

It is emphasized that in this way, supporters of Ukraine seek to ensure its medium-term financing and "to send a signal to Moscow that support for Kyiv among the G7 allies is not weakening."

As reported, US Special Representative for Ukraine's Economic Recovery Penny Pritzker explained that the process of confiscating Russian assets will require a collective decision of all countries that have frozen Russian funds in their financial institutions. It will take time, so we should not expect it to happen quickly.

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