EU agrees in principle to give profits from frozen Russian assets to Ukraine

The European Union has tentatively decided to allocate profits from the frozen Russian assets towards Ukraine's benefit.

An estimated €3 billion could be raised in 2023, with the first €1 billion potentially being allocated as soon as July, based on the rapid conclusion of the proposal, said European Commission President Ursula von der Leyen at a Brussels summit.

The plan, under discussion for nearly a year, intends to funnel 90% of the funds towards military support and 10% for reconstruction in Ukraine. It aims to accommodate Hungary's preference to avoid direct financing of military efforts by possibly redirecting some funds to EU peacekeeping efforts.

Although the move faces legal uncertainties, with Russia potentially claiming the return of funds post-conflict, EU leaders unanimously agree that the interest generated from the frozen assets can aid Ukraine.

President Zelenskiy has urged the EU for more assistance, including using the assets to increase protection against Russian attacks.

Furthermore, the EU is considering higher tariffs on Russian grain, especially grain unlawfully taken from Ukraine, to counteract unauthorized access to the EU market.

At the summit, EU leaders also supported Ukraine and Moldova's progress towards EU membership by directing a swift adoption of their negotiation frameworks. Bosnia and Herzegovina's candidacy received conditional endorsement based on required reforms.

Zelenskiy expressed gratitude for the EU's financial contributions from the Ukraine assistance fund and recent ammunition support. He emphasized that continuing aid for Ukraine is crucial in discouraging any further aggression from Russia.