The European Union (EU) has agreed to allow the proceeds of frozen Russian assets to flow into the defense of Ukraine. On Wednesday, EU ambassadors reached a consensus on this matter, with 90 percent of the money going to the European Peace Facility for military support and ten percent flowing into the budget of the Ukraine Facility.
The decision comes after Russia’s war of aggression against Ukraine, which led to the freezing of approximately 210 billion euros from the Russian central bank in the EU. The Council of Economics and Finance Ministers is expected to approve this agreement next week, with funds amounting to 2.5 to 3 billion euros per year being sent to Ukraine as early as July. Of these funds, 90 percent will go towards weapons and ammunition for Ukraine and ten percent will be used in defense industry and reconstruction efforts.
In Austria, where some of these frozen assets are located, they have decreased significantly due to exchange rate fluctuations and exemptions made by DSN Directorate of State Security and Intelligence (DSN), which brought it down from 2 billion euros at end of year 2022 to current 1.5 billion euros. National Bank (OeNB) also released some frozen assets due to these exemptions.
The EU ambassadors will also discuss the implementation of sanctions against Russia as part of their meeting next week, including a proposed 14th sanctions package that includes restrictions on imports of liquid gas and additional individuals being added to the sanctions list. The goal is to support Ukraine and deter further aggression from Russia through financial means.
