Inching closer and closer to World War III
The European Union announced on Friday that €1.5 billion ($1.6 billion) would be allocated to support Ukraine, marking the first installment from profits earned on frozen Russian assets. This decision follows an agreement by EU member states in May to use the financial gains from these frozen assets to assist Ukraine with military aid and post-war reconstruction.
The EU had frozen approximately €200 billion of Russian central bank assets within its jurisdiction as part of sanctions imposed on Moscow following its invasion of Ukraine in 2022. The bulk of these assets, around 90 percent, are managed by Euroclear, a Belgium-based international deposit organization.
EU transfers €1.5 billion in frozen Russian assets to support Ukraine. – #ZippedNewsAI #RussiaUkrainehttps://t.co/TwosaadSzp
— World News Summaries (@ZippedNewsAI) July 27, 2024
In a statement, EU chief Ursula von der Leyen emphasized the EU’s solidarity with Ukraine, saying, “The EU stands with Ukraine. Today we transfer €1.5 billion in proceeds from immobilized Russian assets to the defense and reconstruction of Ukraine.” She added, “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.”
It is important to note that the funds being transferred are derived from interest accrued on the frozen Russian assets, not the principal amounts, which remain inaccessible to Moscow.
Of the €1.5 billion, 90 percent is allocated to the European Peace Facility, a central fund that finances arms for Ukraine. The remaining 10 percent will go to the EU’s Ukraine Facility, dedicated to supporting the country’s reconstruction efforts.
EU transfers 1.5 billion euros from frozen Russian assets to Ukraine https://t.co/RIudk5UXut
— Paul Popowich (@p_popowich) July 27, 2024
Ukrainian Prime Minister Denys Shmyhal expressed gratitude for the EU’s support, stating on social media, “Thank you von der Leyen and the EU for your steadfast support and this significant contribution to Ukraine’s defense and reconstruction.” The Ukrainian defense ministry echoed this sentiment, highlighting the importance of the funds in bolstering the nation’s defense capabilities.
In contrast, Russia condemned the EU’s decision as “illegal.” Dmitry Peskov, spokesperson for Russian President Vladimir Putin, remarked, “This is reason, of course, for thoughtful actions in response to such illegal decisions, which are implemented by the European Union.”
This financial support from the EU represents a significant step in international efforts to aid Ukraine amid its ongoing conflict with Russia and underscores the broader geopolitical tensions surrounding the situation.
Key Points:
- The EU has allocated €1.5 billion from interest on frozen Russian assets to support Ukraine.
- The funds are intended for military aid and post-war reconstruction in Ukraine.
- The frozen Russian assets, totaling around €200 billion, are primarily held by Euroclear.
- Ukrainian leaders expressed gratitude for the EU’s support, emphasizing its importance for defense and reconstruction.
- Russia condemned the EU’s actions, calling them “illegal” and hinting at potential responses.
Susan Guglielmo – Reprinted with permission of Whatfinger News
