EU to announce Ukraine's first tranche of profits from Russian assets today
EU foreign policy chief Josep Borel (Getty Images)
EU Foreign Affairs Chief Josep Borrell is set to announce today an agreement to direct up to €1.4 billion from the proceeds of immobilized Russian assets to a Ukraine aid fund, citing Politico.
The agreement procedure was successfully completed on Friday.
This is the first tranche of what is expected to become a regular flow of funds. Additionally, Hungary will not be able to block this, as it did with payments for Ukrainian arms under the European Peace Facility.
The proceeds will be channeled through member states, which will act as implementing agents, meaning they will procure items that Ukraine has listed as priorities.
According to three diplomats, the countries selected for this tranche include Germany, Czechia, and Denmark. According to two diplomats, Italy, Latvia, Romania, and Sweden are expected to be responsible for the next tranche in spring 2025.
Frozen Russian assets
Western countries imposed asset freezes on Russia in response to its invasion of Ukraine. The total amount of frozen funds is estimated at $300 billion, most of which is located in Europe.
In an interview with RBC-Ukraine, Estonia's Ambassador to Ukraine Anneli Kolk said that Tallinn recently passed a law on the confiscation of Russian assets and was one of the first in the EU to propose using Russian assets for the reconstruction of Ukraine.
