EU agreed to transfer revenues from frozen Russian assets to Ukraine
Photo: the EU agreed to transfer revenues from the frozen assets of the Russian Federation to Ukraine (Getty Images)
On Thursday, March 21, the leaders of the European Union agreed to confiscate a significant portion of the profits obtained from frozen Russian assets and transfer them to Ukraine. The agreement was reached after nearly a year of negotiations regarding the legal basis for the effective seizure of 190 billion euros held in the Belgian financial company Euroclear, reports The Guardian.
Currently, nothing has been decided regarding the distribution of funds; however, the proposal suggested allocating 90% for military needs and 10% for reconstruction, with the possibility of redirecting a portion of the money to fund EU peacekeeping missions worldwide to meet Hungary's needs.
This step is still not without legal risks, according to the announcement. There is a possibility that the money may need to be returned if Russia initiates legal action.
The Kremlin has already commented on this move, calling it a gross violation of international law. However, European Union diplomats have agreed that profits or interest obtained from frozen assets will be used in Ukraine.
This decision was made following Ukrainian President Volodymyr Zelenskyy's call to increase support for Ukraine to protect eastern cities from Russian bombardment.
"The aggressor should pay the highest price for the war – this is in line with both the letter and spirit of the law," emphasized Zelenskyy in a video address to EU leaders.
At the summit, EU leaders reinforced Ukraine and Moldova's aspirations to become members of the bloc, agreeing to accelerate the commission to begin negotiations.
"If there is enough support for Ukraine, it will show Putin’s buddies that there will be enough support even if this insane person orders the expansion of aggression to other European countries," noted Zelenskyy.
It's worth noting that the European Union's High Representative for Foreign Affairs and Security Policy, Josep Borrell, stated during a press conference that the income from frozen Russian assets should be quickly converted into weaponry. According to him, this will help to restore and increase the capabilities of the Ukrainian defense industry.
