The European Union (EU) will soon receive its first tranche of revenues generated by Russia’s frozen central bank assets, as announced by Josep Borrell, the bloc’s top diplomat. These funds are intended to support Ukraine in its conflict with Russia. This move follows the immobilization of approximately $300 billion in Russian sovereign funds by Western countries shortly after the beginning of the conflict.
While the EU has not officially seized the assets, it agreed “in principle” in May to expropriate the interest earned on them. However, this plan faced strong opposition from Hungary, a vocal opponent of Western policies towards Russia. Russian Foreign Ministry spokeswoman Maria Zakharova criticized the proposal, calling it “criminal and cynical,” adding that Moscow would retaliate with countermeasures.
During a press conference ahead of an EU Foreign Affairs Council meeting on Monday, Borrell stated that the first batch of money from the frozen assets would arrive next week, with the second expected several months later. The total amount of interest generated so far is €2.5 billion ($2.7 billion. Although Borrell did not specify the size of the first tranche, Politico reported that the EU plans to allocate up to €1.4 billion ($1.5 billion) to Ukraine.
Borrell also mentioned that there are legal procedures in place to bypass potential opposition from any EU member state. He emphasized that the EU has already made the decision to use the proceeds from the Russian assets, and the Monday meeting will focus on discussions regarding the specific method for implementation.