European Commission President Ursula von der Leyen has announced that the European Union will send Ukraine 1.5 billion euros ($1.63 billion) that represent revenues from Russian assets frozen by the 27-member bloc.
"Today we transfer 1.5 billion in proceeds from immobilized Russian assets to the defense and reconstruction of Ukraine," von der Leyen wrote on X. "There is no better symbol or use for the Kremlin's money than to make Ukraine and all of Europe a safer place to live."
Following Moscow's unprovoked invasion of Ukraine in February 2022, the West froze some 276 billion euros ($300 billion) in sovereign Russian wealth funds and the Group of Seven (G7) industrialized countries last month decided to service a $50 billion loan for Ukraine with proceeds generated by Russia's frozen assets, prompting Moscow to threaten legal action.
On July 25, EU Economic Commissioner Paolo Gentiloni said the G7 was likely to have a framework deal on the loan for Ukraine's defense and reconstruction by October, according to Euractiv.com.
Ukrainian Prime Minister Denys Shmyhal voiced gratitude for the EU move in a message on X.
"Thank you, @vonderleyen, and the EU for your steadfast support and this significant contribution to Ukraine's defense and reconstruction. Together, we are turning adversity into strength and building a safer, more resilient Europe," he said.
Most of the frozen Russian sovereign funds -- some 210 billion euros ($228 billion) -- are held in Europe, while about $10 billion is in the United States, Euractiv.com estimates. Some $30 billion are in Japan, and $10 billion in Britain.
In reaction to von der Leyen's announcement, Kremlin spokesman Dmitry Peskov said Russia will not leave the EU's move unanswered but said Moscow's response had to be carefully planned.
"This is certainly grounds for well-thought-out actions in response to such unlawful decisions being implemented by the European Union. Such actions will certainly follow," Peskov told journalists on July 26.
By RFE/RL
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The G7 has acted as a gang of seven robbers by deciding to service a $50 bn loan to Ukraine with proceeds generated from frozen Russian assets in the West belonging to Russian sovereign wealth funds estimated at $300 bn.
In so doing the G7 has violated international laws and rules protecting foreign investments and assets and also trust in Western countries and will act as a warning to countries planning any investment or deposits in Western countries and banks.
Is it any wonder then that China has become Saudi Arabia's main foreign investment destination or if some countries are having second thoughts about investing or depositing some assets in Western countries or others thinking of withdrawing their investments, assets and bank deposits?
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert