Billions for Kiev

EU plan for Russian money clears next hurdle

Ukraine is dependent on Western aid.(Bild: AFP/Genya SAVILOV)

According to the Belgian Council Presidency, EU ambassadors agreed in principle on Wednesday to allow the proceeds of frozen Russian assets to flow into the defense of Ukraine. Kiev is to receive the first funds as early as July.

The assets had been frozen due to Russia's war of aggression against Ukraine. According to the proposal, 90 percent of the money is to flow into weapons and ammunition for Ukraine and ten percent into the defense industry and the reconstruction of the country. The EU Commission presented its proposal to the EU summit in March. 

Billions in aid for Ukraine?
According to the EU Commission, around 210 billion euros from the Russian central bank have been frozen in the EU. The ambassadors' agreement is expected to be approved by the Council of Economics and Finance Ministers next week. The EU Commission plans to transfer the first funds to Ukraine as early as July. Brussels expects the investment of the assets to generate income of 2.5 to 3 billion euros per year. These surpluses are to benefit Kiev, while the basic assets remain untouched.

In Austria, the frozen Russian assets have decreased significantly. While it was still 2 billion euros at the end of 2022, it is currently only 1.5 billion euros, according to the Directorate of State Security and Intelligence (DSN). This is due to exchange rate fluctuations and exemptions, according to the DSN. The National Bank (OeNB) confirmed this in response to an APA inquiry. Due to the exceptions, assets frozen by the National Bank were also released again.