The EU has approved: the Ukrainians can use Russian assets to arm themselves

The Council of the European Union has approved that profits from Russian funds locked in European banks in response to the start of the war in Ukraine can be used for military support and reconstruction of Ukraine, the EU Council said.

The Brussels statement emphasized that, in view of Russia's continued aggression against Ukraine, the Council of the European Union adopted legislation to ensure that the net profits from the proceeds of Russian assets frozen in EU banks as a result of the implementation of EU restrictive measures will be used for additional military aid to Ukraine. it is used for support and to improve and rebuild its defense industrial capacities.

According to the legislation, the affected EU banks will contribute up to ninety percent of the net profits accumulated since February 15, 2024 on Russian assets exceeding one million euros. This is necessary so that the financial institutions meet the legal capital and risk management requirements, they wrote. The banks pay the amounts to the EU every six months and they are channeled through the European Peace Framework to support Ukraine's goals. EU payments will be reviewed annually, for the first time before January 1, 2025, they informed.

They reminded: on February 12, the council decided that European banks with assets and reserves of the Russian Central Bank (CBR) of more than 1 million euros are obliged to set aside net profits from Russian assets frozen as a result of the EU's restrictive measures, and cannot dispose of them.

The leaders of the G7 group, which includes France, Germany, Italy, Japan, the United Kingdom, the United States and Canada, as well as the leaders of the European Union, stated in their February 24 statement that they continue to support Ukraine's right to self-defense and expressed their commitment to Ukraine's long-term in addition to his support. They committed to increase their self-defense contribution to Ukraine, as well as to increase military production and delivery capacities to help the country. The statement welcomed the EU legislation on the freezing of frozen Russian assets and their interest, and encouraged further steps to be taken to enable their use, the EU Council recalled in its statement.

MTI

Cover image: Illustration / Photo: Commission.europa.eu