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The European Union froze Russia’s assets worth US$225 billion after the attack on Ukraine in 2022.
The European Union announced on Friday that it has transferred US $ 1.6 billion (Rs 13,340 crore in Indian rupees) as aid to Ukraine. This is the first tranche of money obtained from the profits of Russia’s ‘frozen’ money.
After the attack on Ukraine in 2022, the European Union froze Russia’s assets worth US$ 225 billion (Rs 18 lakh 83 thousand crores). This money belonged to the Russian Central Bank. In May this year, 27 countries of the European Union agreed to give the interest earned from Russian money to Ukraine.
Ukraine will be able to use this money to buy weapons. Apart from the European Union, the G7 also froze Russia’s assets worth 100 billion US dollars. Russia is earning an interest of 3 billion dollars (about 25 thousand crores) every year on the total frozen amount of 325 billion.
EU chief Ursula von der Leyen said there could be no better use of Russian money.
The money is from Russia, Ukraine is getting the interest
European Union President Ursula von der Leyen said in a statement that the European Union stands with Ukraine. We are giving Ukraine the money earned from the interest on Russian assets to help them. There cannot be a better use of Russian money than this.
The European Union has taken this step when Russia has recaptured 2 more villages in eastern Ukraine. In recent times, it has been seen that Russia is getting a lot of success in north-eastern Europe. Ukraine is worried that if it does not get help from Western countries, it may lose more parts.
Amount transferred to special fund
Meanwhile, the European Union said that 90% of the money will be transferred to a special fund called the European Peace Facility. This is already being used by many EU countries to send weapons to Ukraine.
The remaining 10% amount will be put into the budget of the European Union. This amount will be used to help Ukraine’s defense industry. However, according to the report of news agency AP, some countries have objected to this.
G7 will also help Ukraine with Russian money
Last month, the G7 countries agreed to use Russia’s frozen assets to raise $50 billion in loans for Ukraine. Ukraine will be able to use this money against Russia.
US President Joe Biden had said that with this step he wanted to tell Russia that he would not back down from helping Ukraine. However, Russia expressed displeasure over this and said that the consequences of his decision would be very painful.
After the Russia-Ukraine war, America and Western countries have imposed many sanctions on Russia. Russia has suffered a lot due to these. To compensate for this, Russia will seize American assets.
Russia will also confiscate American money
After this, in May itself, Russia decided to seize American assets. President Putin signed an order related to this. It was said that through this, the losses incurred from the Russian assets seized in America will be compensated.
The order signed by Putin states that a Russian entity can ask a Russian court to determine whether its assets in the US have been wrongly seized and demand compensation. The order covers assets such as real estate, movable property.
A special commission of the Russian government will identify the US assets that will be used for compensation. The commission has been instructed to determine how Russian holders can seek the seizure of US assets located in Russia as compensation for assets frozen in the US.
The court will then order the transfer of American assets as compensation. The Russian government has been instructed to make the necessary legal changes to allow the seizure of American assets by the end of September.
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