“Now we make Russia pay”: EU to transfer first $ 1.6 bn in frozen Russian assets to Ukraine

European Commission President Ursula von der Leyen announced that the first €1.5 billion ($1.6 billion) in revenue from frozen Russian assets will be transferred to Ukraine as early as July, in line with international law and while ensuring financial market stability. The West holds around $300 billion of Russian central bank assets frozen worldwide, with most of them being in the European Union. The discussions on using this money for Ukrainian aid and reconstruction are ongoing.  Speaking at the Ukraine Recovery Conference 2024 in Berlin on 11 June, Ursula von der Leyen stated that 90% of the funds will be allocated to defense, while the remaining 10% will be directed towards reconstruction efforts in Ukraine.

“My friends we have always said that Russia must be held accountable for its crimes and now we make Russia pay,” von der Leyen said.

She noted that further discussions on how Ukraine can benefit from mobilized Russian assets will be held at the upcoming G7 summit on 13-15 June.  Earlier, US President Joe Biden confirmed that he agreed with French President Emmanuel Macron to use profits from frozen Russian assets to aid Ukraine, by providing Ukraine with an upfront loan of $2.6-$3.7 billion and secure its financing through 2025. Read more: The $ 300 billion question: Why the West does not confiscate Russian frozen assets despite Ukraine war Reuters: US eyes profits from frozen Russian assets to provide Ukraine urgent aid Financial Times: Orbán holds up Ukraine arms funding from frozen Russian assets Germany ready to use revenues from frozen Russian assets for Ukraine aid, ministry sources told Reuters G7 considers €30 bn Ukraine loan using frozen Russian assets