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Profits from Russia's frozen assets will go to the reconstruction of Ukraine. There is an agreement between EU member states

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On Wednesday, ambassadors of European Union member states reached an agreement to transfer profits from Russia's frozen assets to support Ukraine. The money will be used for the reconstruction of the country, as well as defense in the context of Russian aggression.

“The ambassadors of member states to the EU agreed in principle on measures regarding extraordinary revenues from Russia's frozen assets. The money will be used to support Ukraine's reconstruction and defense in the context of Russian aggression,” the Belgian EU presidency said on the “X” platform.

The agreement will still have to be formally adopted by the Council (member states) at ministerial level.

After Russia begins its invasion of Ukraine in February 2022 Western countries froze almost half of Moscow's foreign exchange reserves – about 300 billion euros. About EUR 200 billion is held in the European Union, mainly in Euroclear – an international financial institution that ensures asset security for banks, stock exchanges and investors.

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Russian money for the defense of Ukraine

In February, European Commission President Ursula von der Leyen told the European Parliament that the EU should consider using profits from frozen Russian assets to purchase military supplies for Ukraine. “There can be no stronger symbol and no better use of this money than making Ukraine and all of Europe a safer place to live,” she added.

In March, EU foreign policy chief Josep Borrell presented the assumptions of a plan under which the EU would allocate 90 percent of revenues from Russian assets frozen in Europe to purchase of weapons for Ukraine. According to the Spaniard, making such a decision, which is up to the Member States, may mean transferring about EUR 3 billion annually to Ukraine.

Main photo source: PAP/Alena Solomonova

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