Russian Money to Euro: EU Transfers €1.5 Billion in Immobilized Assets to Ukraine
The European Union has transferred €1.5 billion generated from immobilized Russian assets to Ukraine. This initial payment, derived from frozen Russian sovereign assets held by EU central securities depositories (CSDs), signifies a significant step in channeling Russian Money To Euro-denominated aid for Ukraine’s defense and reconstruction.
EU Sanctions Generate Revenue for Ukraine
The immobilization of Russian Central Bank assets resulted from EU sanctions imposed after Russia’s invasion of Ukraine. These sanctions prohibit transactions related to these assets, leading to substantial accumulated cash and deposits within EU CSDs. This “windfall” revenue, generated from maturing financial instruments, does not belong to Russia. The EU has now begun redirecting these funds to support Ukraine.
Council Decision Enables Transfer of Russian Money to Euro Aid
In February 2024, the Council of the European Union mandated that CSDs holding over €1 million in immobilized Russian Central Bank assets must set aside the accumulating cash balances. Subsequent legislation, adopted in May 2024, enabled the use of these profits for Ukraine’s benefit. This legal framework facilitates the transfer of Russian money to euro-denominated aid.
European Peace Facility and Ukraine Facility to Benefit
The €1.5 billion will be distributed through the European Peace Facility and the Ukraine Facility. These funds will bolster Ukraine’s military capabilities, particularly air defense and ammunition, and contribute to the country’s reconstruction efforts. This marks a significant contribution from Russian money to euro-funded aid for Ukraine.
A Symbol of Solidarity and Support
This initial transfer of €1.5 Billion demonstrates the EU’s unwavering commitment to Ukraine. It represents a tangible use of immobilized Russian assets to aid Ukraine’s defense and recovery. The EU intends to continue channeling these extraordinary revenues to support Ukraine for as long as necessary.
Continued EU Support for Ukraine
The EU remains steadfast in its support for Ukraine and will continue to explore avenues to utilize immobilized Russian assets to aid the country’s recovery and resilience. This initial transfer of Russian money to euro-denominated aid signifies a crucial step in this ongoing commitment. This initiative transforms immobilized Russian assets into a source of financial support for Ukraine, reinforcing the EU’s solidarity and commitment to the country’s future.