In a significant development, the European Union (EU) has announced a groundbreaking agreement to provide substantial financial assistance to Ukraine in the form of billions of dollars for weaponry and ammo, funded by profits generated from confiscated Russian central bank assets held within the bloc. The pact, hammered out by EU envoys after numerous contentious negotiations between member states, comes following weeks of tense deliberations, made all the more challenging by the strict constraints on utilizing such funds.
Belgium, which holds the majority of the frozen assets in question, revealed the accord’s details. It is estimated that up to $3.2 billion annually will be made available to Ukraine, with approximately 90% of these resources being allocated towards procuring munitions and other military hardware. According to officials, the initial funding disbursement is scheduled to happen in July.
The EU currently maintains around 210 billion euros ($225 billion) worth of Russian central bank assets, most of it frozen in Belgium, as punishment for Moscow’s invasion of Ukraine. Kyiv has persistently urged that these funds be employed to procure essential military supplies amidst ongoing efforts to ward off fresh Russian assaults. A cohort of member states, notably Hungary, have refused to supply weapons to Ukraine, necessitating particular provisions to be integrated into the agreement to enable some 10% of the funds to be recognized as general aid.
Nonetheless, EU member states must still formally ratify the envoys’ decision.
Follow developments related to Russia’s war on Ukraine at https://apnews.com/hub/russia-ukraine.
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