EU to redirect interest earned from Russian funds to military aid for Ukraine

BRUSSELS — In a significant move amid the ongoing Russian invasion of Ukraine, European Union (EU) countries have unanimously agreed to repurpose the interest accrued from Russian funds suspended by the EU towards bolstering military assistance to Ukraine.

Brussels affirmed its commitment to channeling these funds towards supporting Ukraine and enhancing its military defense capabilities.

Under the agreement, 90% of the interest income generated will be allocated to the EU Fund earmarked for financing military equipment and training, with the remaining 10% allocated for direct financial aid to Ukraine.

This decision comes as part of a broader initiative that includes providing 3 billion euros in aid this year alone. Notably, approximately 210 billion euros of Russian funds remain suspended in the EU, with Euroclear financial institutions in Brussels reporting interest earnings exceeding 4 billion euros in 2023.

European Commission President Ursula von der Leyen welcomed the agreement, emphasizing its significance in enhancing the security of both Ukraine and Europe as a whole.