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Ukrainian foreign relations

EU Transfers EUR 10.1 Billion to Ukraine from Frozen Russian Assets

Strategic Insights

— 2 min read

The European Union has transferred EUR 10.1 billion to Ukraine in just six months, with the funds obtained from the proceeds of frozen assets of the Central Bank of Russia. The Ukrainian government received these funds in several tranches, totaling EUR 3 billion in January, EUR 3.1 billion in April, and EUR 1 billion each in March, May, June, and July. The money will be used to develop civilian and military projects in Ukraine. The EU has frozen EUR 210 billion of Russian assets since Russia's full-scale invasion of Ukraine in 2022, with assets managed by Euroclear, Europe's largest central securities depository.

Key Takeaways:

  • The EU transferred EUR 10.1 billion to Ukraine in six months from frozen Russian assets.
  • The funds were obtained from the proceeds of frozen assets of the Central Bank of Russia.
  • The Ukrainian government received the funds in several tranches, totaling EUR 3 billion in January, EUR 3.1 billion in April, and EUR 1 billion each in March, May, June, and July.
  • The EU has frozen EUR 210 billion of Russian assets since Russia's full-scale invasion of Ukraine began in 2022.
  • Assets worth over EUR 40 trillion are managed by Euroclear, Europe's largest central securities depository.
  • Russia has strongly opposed the use of both the assets themselves and the profits from them, and has filed more than a hundred lawsuits against Euroclear.
  • Some European politicians, including German MEP Marie-Agnes Strack-Zimmermann, have been pushing for the full transfer of frozen Russian assets to Ukraine.
  • Economists warn of risks to the global financial system due to the transfer of frozen funds to Ukraine.
  • French economist Nicolas Veron warns that central banks need to be sure that their foreign currency reserves are safe and that the transfer of funds is not that simple.

Statistics:

  • EUR 10.1 billion transferred to Ukraine from frozen Russian assets.
  • EUR 210 billion of Russian assets frozen by the EU since Russia's full-scale invasion of Ukraine in 2022.
  • EUR 40 trillion in assets managed by Euroclear, Europe's largest central securities depository.
  • Over 100 lawsuits filed by Russia against Euroclear.
  • EUR 33 billion in assets held by Euroclear clients seized by Russia at the Russian central securities depository in Moscow.
  • 6 months duration of the EU transfers to Ukraine.

Sources:

  • DW: "EU transfers EUR 10.1 billion to Ukraine from frozen Russian assets."
  • Welt am Sonntag: Quoted statement by Marie-Agnes Strack-Zimmermann.
  • Bruegel: Quoted statement by Nicolas Veron.
  • Peterson Institute for the World Economy: Quoted statement by Nicolas Veron.

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