EU to transfer €1bn of incomes from frozen Russian assets to Kiev

By July 1, the European Union (EU) will be able to donate to the Kiev government €1 billion generated by incomes from frozen Russian assets if it manages to promptly agree on the procedure of their seizure, European Commission President Ursula von der Leyen said.

"If we are swift enough in concluding the proposal, we could disperse the first billion on the 1st of July," she told reporters after the first day of the European Council meeting in Brussels.

In her words, EU leaders have expressed their support for the European Commission’s proposals during the summit.

The European Commission plans to generate about €3 billion in 2024 if the expropriation mechanism is approved, von der Leyen added.

The European Council said in a joint statement that the heads of EU states and governments failed to make any practical decision regarding the expropriation of frozen Russian sovereign assets.

According to the European Commission, some €200 billion worth of Central Bank of Russia assets and private funds to the tune of around €24 billion have been immobilized by the European Union.

EU High Representative for Foreign Affairs and Security Policy Josep Borrell proposed that EU countries send 90% of the proceeds from Russia’s frozen assets to the European Peace Fund to finance arms supplies to Kiev, and transfer the remaining 10% to the EU budget to then be used to support Ukraine’s military industry.