EU TRANSFERS $3 BILLION TO THE UKRAINE FROM FROZEN RUSSIAN ASSETS

Fri 10 January 2025:

Ukraine’s Finance Ministry announced on Friday that it has secured 3 billion euros (about 3.09 billion U.S. dollars) from the European Union (EU) backed by the revenues of the frozen Russian assets.

The funds are part of the EU’s contribution to the Group of Seven (G7) Extraordinary Revenue Acceleration for Ukraine (ERA) initiative, according to a statement on the ministry’s website.

The money will be used to finance the priority budget expenditures in social and military sectors, support macroeconomic stability, and restore critical infrastructure, said Finance Minister Sergii Marchenko.

Since February 2022, financial institutions of the EU member states have immobilized assets of the Central Bank of Russia worth approximately 210 billion euros (about 216 billion dollars).

The G7 ERA initiative envisages 50 billion dollars in support for Ukraine secured using proceeds from frozen Russian assets.

Last month, Ukraine received 1 billion U.S. dollars from the U.S. under the initiative.

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Frozen Russian assets refer to funds and property belonging to Russia or Russian individuals, often linked to the government or oligarchs, that have been seized or blocked by countries imposing sanctions following Russia’s invasion of Ukraine. These assets, including foreign reserves and private wealth held abroad, are estimated to total hundreds of billions of dollars.

The idea of transferring these assets to Ukraine has gained traction as a way to help rebuild the war-torn country. Proponents argue that since the assets belong to a state or individuals supporting aggression, they should fund reparations. Critics, however, warn that such moves could set a precedent for violating international property laws, complicate diplomatic relations, and lead to legal battles.

If implemented, this transfer would mark a significant shift in how frozen assets are used in geopolitics, directly supporting a victim nation rather than merely serving as leverage. It remains a complex legal and ethical debate with far-reaching consequences.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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