EU transfers first tranche from frozen Russian assets to support Ukraine

The head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev, has said:

The European Union has transferred the first tranche of 1.5 billion euros from the profits from frozen Russian assets to support Ukraine. These funds will be channelled through the European Peace Fund and the Fund for Supporting Ukraine's Military Capability, as well as for the reconstruction of the country.

How will the funds be used?

European Peace Facility: Financing joint procurement of weapons and equipment for the Ukrainian Armed Forces.
Compensations to States: Paying compensation to countries that transfer their arms to Ukraine.

Importance of this step

The freezing of Russian assets was a swift response to the war unleashed by Russia and had minimal objections. However, further action has sparked complex discussions regarding political, legal, economic and technical aspects.

We understand our partners who are trying to find comprehensive answers to these questions in order to avoid lengthy lawsuits, threats to their own financial systems and possible outflow of investments from states that are not members of our coalition," Getmantsev said.

Plans for the future

Ukraine together with its allies is striving step by step to achieve the final goal, which is to compensate all the losses caused by the aggressor. By the end of the year, together with the G7 states, it is planned to find the best solution for the allocation to Ukraine of 50 billion dollars, secured by the proceeds from frozen Russian assets.

We must come to the format of full compensation for the damage inflicted on Ukraine, based on the Communiqué of the G7 Leaders' Summit, which confirms that Russia will not have access to its assets until it compensates for all the damage inflicted on Ukraine," Daniil Getmantsev stressed.