Ukraine will receive the first €1.5 billion of proceeds from frozen Russian assets from Belgium in July, which will be used for the country's defence.
This was announced by the Prime Minister of Ukraine Denys Shmyhal.
‘Euroclear International Depository in Belgium, where a significant part of the frozen Russian assets are kept, promises to make the first instalment of almost €1.5 billion this month,’ the Prime Minister said in a Telegram message.
According to the head of the Ukrainian government, ‘the funds will be used to purchase the most necessary weapons, air defence systems, artillery shells and to develop the defence industry.’
‘Ukraine fundamentally insists that in the future all Russian assets in the West should be confiscated and used for the restoration and defence of our country,’ Shmyhal said.
Use of Russian assets
- ‘The Group of Seven has reached a political agreement to provide Ukraine with about $50 billion in financial support from frozen Russian assets.
- In particular, the G7 countries will provide Kyiv with loans that will be repaid from the profits generated by the frozen funds worth about $280 billion, most of which are blocked in Europe.
- Ukraine has been asking its allies to transfer Russia's frozen funds to it, but so far only the profits from these funds have been agreed upon. This refers to profits accumulated after 15 February 2024, when the EU countries agreed to use these funds for Ukraine's needs. The €5 billion accumulated before this agreement will not be transferred.
- In early 2024, the EU agreed to transfer to Ukraine the profits from these frozen assets, but not the assets themselves. And the idea of the G7, which includes countries outside the bloc, is to provide Ukraine with more and faster support to finance its defence needs.
- Recently, US President Joe Biden and French President Emmanuel Macron agreed to cooperate on the transfer of frozen Russian assets to Ukraine's needs.