EU plans to divert Russian asset profits to Ukraine for defence boost

The European Union plans to transfer profits from Russian assets to Ukraine in July. The funds will be used for arms supply and strengthening the defence industry, reports Bloomberg. According to the EU's plan, about £2.7 billion per year will be sent.

The European Union has prepared a draft law that provides for transferring funds from the profits of frozen Russian assets to Ukraine as early as this July.

As "Bloomberg" indicates, the initiative has been adopted, but all EU member states must support it.

According to the draft, Ukraine will receive a portion of the profits from the Bank of Russia's frozen assets collected after February 15, 2024. According to the EU plan, funds will be collected twice a year until the sanctions against the Russian Federation are lifted.

According to the EU's plan, about £2.7 billion a year will be spent on purchasing arms and developing the domestic defence industry.

After the Russian invasion of Ukraine two years ago, Western countries froze £220 billion of the Russian central bank's reserves. About £181 billion are located in the Belgian clearing house Euroclear. Interest and investment profits accrue daily from this capital, which last year amounted to a total of £3.7 billion—"Deutsche Welle" points out.