The European Union has committed to providing Ukraine with €2.5-3 billion annually from the interest earned on frozen Russian assets within the bloc. This decision comes as part of efforts to support Ukraine’s defense capabilities and manufacturers, with a focus on acquiring ammunition and air defense systems. The EU and US froze approximately $300 billion in Russian assets at the beginning of the Ukraine conflict in 2022, leading to the redirection of generated revenues to support Ukraine through the European Peace Fund.
Defense Minister Rustem Umerov revealed that Ukraine expects to receive the first tranche of funds in August, with subsequent funding to follow. While Russia has condemned the freezing of its assets and warned against their utilization, Ukrainian officials view the financial support as essential for enhancing their security measures. The situation has sparked tensions, with former Russian President Dmitry Medvedev suggesting that targeting Russian assets could be considered an act of aggression. As the conflict continues, the allocation of funds from immobilized assets remains a contentious issue between the involved parties.
