EU to spend $1.9 billion of Russian cash to repay Ukraine’s loans
Drawing on windfall profits generated by frozen Russian assets, the European Union will transfer EUR1.6 billion ($1.9 billion) to Ukraine, the European Commission announced on Aug. 11.
This will be the third transfer of funds derived from the frozen assets of Russia’s Central Bank. In the first two installments, 90 percent of the funds were disbursed through the European Peace Facility, with the remaining 10 percent sent via the Ukraine Facility. Beginning with this third payment, 95 percent will flow through the Ukraine Loan Cooperation Mechanism (ULCM) and 5 percent through the European Peace Facility.
The commission explained that the ULCM helps Ukraine service loans from the EU and other creditors, while the European Peace Facility meets the country’s urgent military and defense needs.
Together with G7 nations and Australia, the EU has frozen about $280 billion in Russian assets in the form of securities and cash, primarily held by Belgium’s Euroclear clearinghouse.
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