EU funnels $1.1 billion of Russian assets into Ukraine’s defense industry

The European Commission signed an agreement with several EU governments to allocate the funds to boost Ukraine’s defense industry output.

“EU has allocated EUR1 billion from windfall profits of frozen Russian assets to the Ukrainian defense industry,” Umerov said in a Facebook post.

“The European Commission signed the agreement with a number of European governments today.” 

He added the European Commission’s decision is a strategic move that will increase production of a wide range of equipment for the Ukrainian military, including drones, ammunition, and other critical equipment.

“This is not just about strengthening Ukraine’s defense capabilities—it’s also an investment in the development of our industry,” the minister stated.

“We are becoming more self-reliant and stronger.” 

He noted that using Russian assets to strengthen Ukraine is “an important step on the path to restoring justice” because it lays the legal foundation for post-war reparations.

“Thank you to the European Union and its member states for your trust, leadership and support in our joint fight for peace and security in Europe,” he concluded.

Bloomberg reported that the EU is now looking for “more aggressive” measures to confiscate frozen assets belonging to Russia’s central bank. Together with the G7 and Australia, the EU has frozen roughly $280 billion in Russian assets, primarily in the form of securities and cash, through Belgium’s Euroclear clearing house.

The U.S. Treasury Department said sanctions against prominent Russian figures have frozen an additional $58 billion in assets, including luxury real estate, yachts, and private jets.

In January, the EU transferred EUR3 billion secured by revenues from Russia’s frozen assets to Ukraine. However, on Feb. 25, EU foreign policy chief Kaia Kallas said there is currently no consensus among EU members on confiscating Russian assets held in the bloc.