The EU approves the transfer of revenues from frozen Russian assets to Ukraine, 90% of which will go to the military.

On May 21, the Council of the EU agreed on a conservative plan for the use of Russian assets for the benefit of Ukraine. It will allow Ukraine to receive €3B this year, the Minister of Foreign Affairs of the Czech Republic Jan Lipavsky said. As he clarified, 90% of the funds will support the Armed Forces of Ukraine.

Note that the EU decision opens an additional source of income for Ukraine, but it is the most conservative of all possible ways of using these assets. Ukraine continues to push for the confiscation of all Russian assets.

According to the EU Council, central depositories who have blocked Russian access to its sovereign assets and reserves of more than €1M will deduct the net profit accrued to them from February 15, 2024 in favor of Ukraine. The money will be paid in bi-annual tranches for further military support of Ukraine through the European Peace Fund (90%) and for supporting the capacities of the defense industry of Ukraine and its reconstruction needs under EU programs (10%).