Part of money from frozen Russian assets to be used to prepare Ukraine for winter - EU envoy

The mechanism for Ukraine to receive funds derived from Russian assets frozen abroad as part of the Group of Seven agreement is still being finalized, while the European Union has already received the first such transfer, which is be forwarded for Ukraine’s needs in the near future.

The Ambassador of the European Union to Ukraine, Katarína Mathernová, stated this in an interview with Ukrinform.

"The G7 mechanism for the $50 billion loan that will be backed by the proceeds from (frozen Russian – ed.) assets is being worked on, I think these are the very final stages of developing the actual mechanism," the ambassador said.

"But it’s important to remember that the European Union, before the G7 process was agreed, actually took action and sequestered the assets because a major part of these assets is actually in the European Union – in fact, in Belgium, in a company called Euroclear. And we have received the first transfer in the amount of EUR 1.5 billion this July, and all of the money is destined to go to Ukraine," Mathernová noted.

She explained that the money should be used to buy weapons and ammunition in the EU. In addition, the money will go to the purchase of weapons in Ukraine, thus eliminating transport and logistic costs.

"Also, a portion of it goes to the winter preparedness on energy," the ambassador said, adding that "the EUR 1.5 billion is already happening, it's being contracted, and will be coming to Ukraine in terms of support of direct procurement of weaponry very, very soon."

As reported by Ukrinform, Prime Minister Denys Shmyhal, speaking at the Ukraine 2024. Independence forum on August 27, announced that the country expects to receive $300 billion derived from frozen Russian assets, with the first $50 billion to be allocated before year-end.