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EU countries have confirmed an agreement on the use of revenues from frozen Russian assets for Kyiv.

by AI | 21.May 2024 | Europe in brief AI

Achieving consensus among member states was preceded by long debates. Czechia supported the proposal to utilize the proceeds from frozen Russian assets.

The boy carries canisters of water among the destroyed buildings in Irpin. Photo: Thibault Camus/AP/dpa

Brussels – EU states have confirmed an agreement that proceeds from frozen Russian assets in Europe will be used to buy weapons for Ukraine and reconstruct the country, which has been defending itself against Russian military aggression for more than two years. The Permanent Representation of the Czech Republic to the EU announced this on the social network X informed. Annual revenues are expected to amount to up to three billion euros (approximately 74 billion CZK).

“The EU Council confirmed an agreement on the use of proceeds from the immobilized assets of the central bank of the Russian Federation for the benefit of Ukraine. It is expected to yield an annual revenue of about 2.5 to 3 billion euros,” the Czech representation at the EU stated. The first funds could be obtained by Kyiv as early as July.

Reaching an agreement among member states was preceded by lengthy debates. Some countries had issues with using the funds for military purposes. However, the Belgian presidency came up with a compromise proposal that also satisfied those countries wishing to remain neutral, such as Austria, Malta, Cyprus, or Ireland. Objections to sending military aid to Ukraine were previously also expressed by Slovakia and Hungary. The Czech Republic, on the other hand, supported the use of proceeds from frozen Russian assets in Europe for both reconstruction and defense of the war-torn country.

According to the Czech Minister for European Affairs Martin Dvořák, no objections were raised against the proposal at today’s meeting. He emphasized that these are proceeds from frozen assets, not the assets themselves, which remain untouched. “The proceeds are considered extraordinary income, which should be paid out twice a year. It seems that this procedure is sufficiently legal to be applied. I think no one had any problem with it today,” the minister told Czech journalists.

Western countries, in response to the attack by Russian troops on Ukraine more than two years ago, froze assets of the Russian central bank worth around 210 billion euros (approximately 5.3 trillion CZK). Most of these assets are located in Europe, especially in the international payment settlement center Euroclear in Belgium.