On Monday, the 29th of January, 27 European Union (EU) members unanimously agreed to direct the profits from the frozen Russian central bank assets in Europe towards the reconstruction of Ukraine. According to a source, this first step was taken in principle at a meeting of EU ambassadors chaired by Belgium, which currently holds the EU presidency, reports Reuters.
The agreement comes ahead of a summit at which EU leaders plan to overcome Hungary’s objections on allocating 50 billion euros in funding to Ukraine over the next four years.
Legal and language checks are needed before ambassadors can formally adopt the agreed document, which is expected to be adopted as soon as possible. Once adopted, the European Commission is expected to propose that the allocated funds be transferred to the EU budget and then to Kyiv.
It is not yet clear when the funds will actually reach Ukraine.
France and Germany have already expressed their opposition to the plan, while the European Central Bank has warned that it could undermine confidence in the euro and create turmoil in global markets, according to Reuters.
Following Russia’s invasion of Ukraine in 2022, the EU, US, Japan, and Canada have jointly frozen around 300 billion US dollars of Russian central bank assets. Of this amount, around 200 billion US dollars are reportedly held in Europe, mainly in the Belgian clearing system Euroclear.
Also read: Hungary open to use EU funds for Ukraine aid package, says Orban adviser
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