EU to transfer €2.1bn from frozen Russian assets to Ukraine
Source: European Commission, as reported by European Pravda
Details: This week, the EU requested €2.1 billion in windfall revenues from frozen assets of the Russian Central Bank held in central securities depositories. This will mark the second such transfer, following the initial tranche disbursed in July 2024. It covers income accumulated during the second half of 2024.
These funds originate from the Russian Central Bank's assets frozen due to EU sanctions imposed in response to Russia's ongoing war of aggression against Ukraine.
Although the assets themselves remain frozen, the revenues they generate are being used to support Ukraine.
The proceeds from this tranche will be channelled through the European Peace Facility, as agreed by the EU Council in 2024, and the Ukraine Fund to strengthen Ukraine's defence capabilities and contribute to the country's recovery and reconstruction.
This measure is part of the EU's unwavering commitment to support Ukraine for as long as needed.
Future tranches will primarily be allocated to ensure Ukraine can repay funds received under the G7-led Extraordinary Revenue Acceleration for Ukraine (ERA) loans initiative, while a limited portion will continue to be disbursed via the European Peace Facility.
Background:
On 9 April, the European Union transferred a €1 billion loan tranche to Ukraine as part of the ERA initiative, backed by proceeds from frozen Russian assets.
In 2024, the G7 agreed to jointly provide Ukraine with a US$50 billion loan secured by Russian assets. The funds are formally issued as a loan but will be repaid using the revenues from the frozen Russian assets.
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