European Union nations have reached a breakthrough deal to provide Ukraine with additional funds for arms and ammunition from the profits raised from frozen Russian central bank assets held in the bloc. The agreement was announced by Belgium, the country holding most of the frozen assets, after tough negotiations among member states. The deal is expected to free up to $3.2 billion a year for Kyiv, with 90% of the funds earmarked for military equipment. A first installment of the funds could be sent to Ukraine as soon as July.
The EU currently holds around $225 billion in Russian central bank assets, mostly frozen in Belgium, as a response to Moscow’s war against Ukraine. Kyiv has been pushing for the release of these funds to acquire crucial military supplies. However, not all EU member states are on board with supplying weapons to Ukraine, with Hungary in particular opposing such assistance. As a compromise, special safeguards have been included in the agreement to allow for 10% of the funds to be designated as general aid.
Despite the tentative breakthrough reached by the 27 EU ambassadors, member states still need to officially endorse the agreement. The negotiations were made more challenging by the strict financial limitations on using frozen Russian assets. The deal represents a significant step in supporting Ukraine’s defense capabilities as it contends with the threat of renewed Russian attacks. The funds are crucial for Kyiv as it seeks to bolster its military defenses and deter further aggression from Moscow.
The agreement to allocate funds from frozen Russian central bank assets for Ukraine’s military needs comes at a critical time in the ongoing conflict between Russia and Ukraine. The EU’s decision to provide financial support for arms and ammunition demonstrates a commitment to standing with Ukraine in the face of aggression. The first installment of funds could help bolster Ukraine’s defenses and enhance its ability to repel potential Russian incursions. The deal underscores the EU’s willingness to take concrete action to support Ukraine’s security and sovereignty.
Ukraine has long called for access to the frozen Russian assets held by the EU to acquire essential military supplies. The provision of additional funds from these assets represents a significant development in Kyiv’s efforts to strengthen its defense capabilities. By earmarking a substantial amount of the funds for military equipment, the EU is assisting Ukraine in its efforts to defend its territory and deter further aggression. The deal highlights the importance of international support for Ukraine in the face of external threats to its security and stability.
