Ukraine is expected to receive revenues estimated at 1.4 billion euros (equivalent to 1.6 billion dollars) from the assets of the Russian Central Bank that were frozen in European Union countries.
European Commission President Ursula von der Leyen announced on Wednesday that these revenues “will be directed to areas of greatest need: preserving the Ukrainian state, maintaining essential public services and supporting the brave Ukrainian armed forces.”
The Commission explained that these windfall profits are the result of interest derived from the cash balances of the assets of the Russian Central Bank frozen under sanctions imposed by the European Union.
The European Commission also prepared the legal framework for disbursing the first tranche of a loan worth 90 billion euros (equivalent to 104.5 billion dollars) to Ukraine, which is suffering from the consequences of the war, a loan that is still suspended due to the opposition of the Hungarian Prime Minister, Viktor Orban.
“We will provide the €90 billion loan to Ukraine,” European Commission President Ursula von der Leyen confirmed on Wednesday.
Orban, who is close to Russia, reportedly voted against this loan, as his party prepares to contest difficult parliamentary elections later this month. During a summit last month, many EU leaders hoped that Orban would change his position after the elections ended.
The European Commission has sent to European capitals a draft law requiring unanimous approval to proceed with disbursing the loan.
“With this we are sending a clear message that the Commission is ready to move forward,” von der Leyen said.
According to the established plans, 45 billion euros will be disbursed during the year 2026, of which 16.7 billion euros will be allocated to provide budget assistance, while 28.3 billion euros will be allocated to improving the capabilities of the Ukrainian defense industry, with a special focus on the production of drones.
