The EU will replenish the budget for aid to Ukraine at the expense of the frozen assets of the Russian Federation
On Monday, February 12, the Council of Europe passed a decision on revenues from the frozen assets of the Central Bank of the Russian Federation, the income from which can further serve to finance the needs of Ukraine, which suffered from the military invasion.
This is stated on the website of the Council of Europe.
It is noted that this step allows the EU to decide on the possible establishment of a financial contribution to its budget, collected at the expense of this net profit – in the future, they will be transferred to Kyiv to deal with recovery and reconstruction at a later stage.
— This financial contribution can be sent through the EU budget to the Fund of Ukraine, according to which the Council and the European Parliament reached a preliminary agreement in early February 2024, the document states.
Freezing the assets of the Russian Federation
Since the beginning of the full-scale invasion of Russian troops in Ukraine in February 2022, the EU, in coordination with international partners, has prohibited any operations related to the management of reserves, as well as assets of the Central Bank of the Russian Federation.
As a result, the relevant assets belonging to financial institutions in EU member states are effectively “frozen”.
Later, legal grounds were found in Europe for the use of assets confiscated in Russia.
We will remind you that on February 1, the European Council reached an agreement on the revision of the long-term budget of the EU (Multiannual Financial Framework, MFF) for 2021-2027, in particular by approving €50 billion in financial assistance to Ukraine.
The EU leaders also named the conditions for Ukraine to receive money from the European Union and confirmed the commitment to further military, financial, political and humanitarian support.
