The amount of 1.5 billion euros of income from frozen Russian assets will be available in July. The money will be used to help Ukraine.
Points of attention
- In July, the confiscation of 1.5 billion euros of proceeds from Russian assets will become available for use in aid to Ukraine.
- Frozen Russian assets in the EU can become a source of financing for the recovery and support of the Ukrainian economy.
- In July 2024, Ukraine may receive the first tranche from the profit of the blocked assets of the Russian Central Bank.
- The European Union has decided to use the proceeds of frozen Russian assets to support Ukraine, but some countries, in particular Hungary, are blocking this process.
- In May, the EU countries agreed on principled measures regarding the use of surplus profits from frozen Russian assets for the reconstruction and arming of Ukraine.
When will there be confiscation of 1.5 billion euros of income from Russian assets
We are gathering financial strength to help Ukraine resist and rebuild. An income of 1.5 billion euros from immobilized Russian assets will become available in July, said the head of the European Commission, Ursula von der Leyen.
In addition, von der Leyen reported that 1.9 billion euros will come to Ukraine this month under the UkraineFacility program.
What is known about frozen Russian assets
Since the beginning of the full-scale invasion of Ukraine, blocked assets of the Bank of Russia for about 260 billion euros have been found abroad, more than two-thirds of them are frozen in the EU.
The Belgian company Euroclear holds about 191 billion euros belonging to the Russian Central Bank, which in 2023 earned about €4.4 billion from them, writes the Financial Times concerning the financial report of Euroclear.
A representative of the US Treasury stated that Ukraine will not be able to immediately receive the entire amount if frozen Russian assets are confiscated.
In July 2024, Ukraine may receive the first tranche of the profits of the frozen assets of the Russian Central Bank if the leadership of the European Union agrees on such a step.
In March 2024, it became known that the leaders of the European Union made a "political" decision regarding the use of revenues from frozen Russian assets for Ukraine, but without an action plan. At the same time, according to the joint statement following the results of the first day of the EU summit, they agreed to "continue work" on the plan for their use. However, Hungary blocks the confiscation of Russia's frozen assets in favor of Ukraine.
On May 8, the ambassadors of the EU countries agreed on principled measures regarding the use of excess profits from frozen Russian assets for the reconstruction and arming of Ukraine.
