The European Union has transferred 10.1 billion euros to Ukraine in the first half of this year, derived from revenues generated by frozen assets belonging to the Russian Central Bank. Figures released by the European Commission, reported by Welt am Sonntag, detail the disbursements.
These funds are being utilized to support a range of military and civilian projects within Ukraine. The Ukrainian government, under President Volodymyr Zelenskyy, received consistent payments of one billion euros in March, May, June and July. Earlier in the year, disbursements totalled three billion euros in January and 3.1 billion euros in April.
The frozen Russian assets are held by Euroclear, a Belgian company specializing in securities safeguarding and settlement. In 2022, the EU froze a total of 210 billion euros of Russian assets.
The allocation of these revenues is sparking debate, with some political figures advocating for the direct transfer of the principal assets – not just the generated interest – to Ukraine. Marie-Agnes Strack-Zimmermann, a Member of the European Parliament, stated the urgency of directly utilizing these Russian funds to bolster Ukraine’s economy or finance weapons systems.
However, economists caution against the potential repercussions for the global financial system. Nicolas Véron, a researcher affiliated with the Bruegel and Peterson Institute think tanks, acknowledged the moral appeal of transferring the funds to Ukraine but emphasized the complexities involved. He highlighted the importance of maintaining trust in the security of central bank reserves held abroad, describing it as a cornerstone of the international monetary system.