may 24, 2024
The EU is preparing a decision on directing part of the profits from frozen Russian sovereign assets to the production of weapons for Ukraine with the help of Ukrainian facilities
Radio Liberty reports this with reference to a high-ranking official in the European Council, who is not authorized to give comments to the mass media.
“For the first time, we will have cash available immediately. We hope to receive these funds in July, so we have decided not to use them to reimburse member states, but to finance purchases in Europe or outside Europe or also in Ukraine. And we would like to offer the states -members to use part of these excess profits to finance the defense industry in Ukraine,” said the interlocutor of the publication.
The European Council official explained that this is how the EU expects to respond to Ukraine’s request for assistance in financing the defense industry, announced on May 6 at the EU-organized defense forum in Brussels.
The Minister of Strategic Industry of Ukraine Oleksandr Kamyshin stated at this forum that the Ukrainian defense industry could produce products worth an additional $10 billion if it had adequate financing.
The first tranche of profits from frozen Russian sovereign assets, which the European Union should receive in July, will amount to about 1.6 billion euros.
What is known about frozen Russian assets
On November 30, the US Senate presented a bill on the confiscation of Russian assets. Already on January 11, the Biden administration supported the confiscation of assets of the Russian Federation for transfer to Ukraine.
At the same time, Russia estimated that the West could lose at least $288 billion in assets and investments if it confiscated frozen Russian assets to help rebuild Ukraine, and said Moscow would retaliate.
On January 23, Belgian Ambassador to the USA Jean-Arthur Regibeau said that the Western countries should make a collective decision regarding the confiscation of frozen Russian assets, most of which are stored in the Brussels settlement center Euroclear.
Later, the US Senate committee approved a draft law on the confiscation of Russian assets and their transfer to Ukraine, and on January 30, the Committee on Political Affairs of the Parliamentary Assembly of the Council of Europe approved a draft resolution that provides for the confiscation of frozen Russian assets and their transfer to a new fund for the recovery of Ukraine.
Subsequently, it became known that 191 billion of the 260 billion euros of Russia’s frozen foreign assets are stored in Europe, the profit from which in 2023 was 4.4 billion euros. It was assumed that this profit would be transferred to Ukraine.
On February 12, the Council of the EU adopted a decision on the regulation of the future mechanism for the use of profits from the frozen assets of the Russian Federation on the territory of the EU in favor of Ukraine.
On May 8, the ambassadors of the European Union agreed to direct the revenues from the frozen assets of the Russian Federation to the reconstruction of Ukraine, as well as to the defense against the aggressor.
The European Commission reported that Ukraine will receive the first payment in July 2024.
The G7 is discussing the possibility of a loan for Ukraine based on the proceeds from the frozen assets of the Russian Federation.
“For the first time, we will have cash available immediately. We hope to receive these funds in July, so we have decided not to use them to reimburse member states, but to finance purchases in Europe or outside Europe or also in Ukraine. And we would like to offer the states -members to use part of these excess profits to finance the defense industry in Ukraine,”
Well, now is the end of May and getting something in July is considered to be immediately in European time measure. For me, immediately is now.
At any rate, this is a good development. From June to August we’ll see lots more money, weapons and ammo in Ukraine. Maybe we can achieve the elimination of 2000–3000 roaches a day by then?