Ukraine to receive first $1.5 billion from frozen Russian funds in August

“As far as the proceeds are concerned, I informed the ministers about the progress in preparing the first transfer of 1.4 billion euros,” which will be used to finance the purchase of priority military equipment, including air defense systems, ammunition for artillery and purchases for the Ukrainian defense industry, he said.

“In this way, we will not only provide military assistance to Ukraine, but also receive it from Ukraine itself, which is certainly the most logical and effective thing we can do.”

This follows an earlier decision made by EU member states on June 24 to approve the first tranche of military aid for Ukraine from the proceeds of frozen Russian assets.

Proceeds of frozen Russian assets for Ukraine

EU ambassadors agreed to transfer proceeds of frozen Russian assets to Ukraine on June 8. Ukraine is expected to receive about €3 billion annually.

G7 leaders on June 13 decided to allocate $50 billion to Ukraine under new Extraordinary Revenue Acceleration (ERA) loan program. Italian Prime Minister Giorgia Meloni clarifies that it is not a question of confiscating assets, but of interest on them.

EU Trade Commissioner Valdis Dombrovskis on June 21 said that Ukraine would receive the first tranche of €1.5 billion from the profits from Russian assets frozen in the EU “before the summer holidays.”