European Commission explains how it will use Russia's frozen assets after EU decision

The European Commission has announced the first payment of excess profits from the use of Russia's frozen assets in the European Union in July 2024.

Source: European Commission statement, European Pravda reports

Details: Valdis Dombrovskis, the European Commission’s Executive Vice-President for an Economy that Works for People, has welcomed the official decision of the Council of the European Union, which unblocks the use of extraordinary proceeds from the assets of the Russian central bank in the EU.

"Speed remains of the essence and the Commission will continue making all efforts to allow the first payment to be made already in July," he added.

The European Commission has clarified that the decision on Russia's assets will come into force after publication in the EU's Official Journal. "The resources (from Russia's assets – ed.) will be available to support Ukraine starting from July 2024, with bi-annual payments," it said.

In 2024, the European Union will allocate all the funds received from Russian assets to the Ukraine Facility, a four-year economic assistance programme for Ukraine, the European Commission said in a statement. The Commission specified that it is about 2.5-3 billion euros.

As the EU Council has already reported, 90% of the expected revenues will be used for military purposes to support the defence of Ukraine, and the remaining 10% will go to the recovery and reconstruction of Ukraine.

In February, the EU agreed on another important stage in its plan to use Russia's frozen assets; it concerns the legal rules for storing excess profits from assets.

Support UP or become our patron!