The EU ambassadors agreed in principle on Wednesday to allow the proceeds of frozen Russian assets to flow into the defense of Ukraine, which had been frozen due to Russia’s war of aggression against Ukraine. It was agreed that 90 percent of the money should go to the European Peace Facility for military support, while ten percent should flow into the budget of the Ukraine Facility.
According to the EU Commission, approximately 210 billion euros from the Russian central bank have been frozen in the EU. The Council of Economics and Finance Ministers is expected to approve the ambassadors’ agreement next week, with the EU Commission planning to send the first funds to Ukraine as early as July. The funds amount to 2.5 to 3 billion euros per year, with 90 percent going towards weapons and ammunition for Ukraine and 10 percent into the defense industry and reconstruction efforts.
In Austria, the frozen Russian assets have decreased significantly, with the Directorate of State Security and Intelligence (DSN) stating that it has decreased from 2 billion euros at the end of 2022 to 1.5 billion euros currently. This decline is attributed to exchange rate fluctuations and exemptions that have been made. The National Bank (OeNB) has also released frozen assets due to these exemptions.
Additionally, the EU ambassadors will discuss the 14th sanctions package against Russia, which includes sanctions against imports of liquid gas and adding other organizations and individuals to the sanctions list. The agreement on the use of frozen Russian assets and the implementation of sanctions aim to support Ukraine and deter further aggression from Russia.