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BRUSSELS ― The European Commission transferred €1.5 billion of profits from investing frozen Russian assets to buy weapons for Ukraine.
After months of grueling negotiations in Brussels, the EU executive finally sent the first batch of funding to the war-torn country.
Ninety percent of the cash will be used for military purposes, while the remaining amount will go towards humanitarian aid.
EU capitals agreed to use the proceeds generated by investing €192 billion immobilized Russian assets held by the Brussels-based securities depository Euroclear.
Russia’s assets generated €1.55 billion between Feb. 15 and June 30, according to Euroclear’s figures. The financial institution kept around 10 percent as a buffer against legal and financial risks.
“There is no better symbol or use for the Kremlin’s money than to make Ukraine and all of Europe a safer place to live,” the European Commission president Ursula von der Leyen wrote on X.
EU leaders have made a point that the proceeds of the assets do not legally belong to the Kremlin. Negotiations in Brussels dragged on for months due to concerns that tapping into these funds could have triggered legal and financial risks.
G7 countries want to build on this EU-wide agreement to step up support to Ukraine. Leaders of the Western alliance agreed to issue a $50 billion loan to Kyiv to be repaid through the profits of the assets but the details still have to be ironed out.
