EU Transfers €1.5 Billion from Frozen Russian Assets

The European Union has transferred €1.5 billion ($1.6 billion) from the proceeds of frozen Russian assets to support Ukraine's defense and reconstruction efforts. This marks the first tranche of funds from a scheme agreed upon in May, which aims to use the interest from immobilized Russian assets, estimated at €210 billion, to aid Ukraine. Ninety percent of the funds will be allocated to military assistance through the European Peace Facility, while the remaining 10% will go towards reconstruction efforts. EU officials, including European Commission President Ursula von der Leyen, emphasized that using the Kremlin's money to support Ukraine is a powerful symbol. The Kremlin has condemned the move as theft and threatened retaliation. This initiative also sets a precedent for future financial support from Western allies, including a proposed $50 billion loan from G7 countries.