In May, the EU's 27 member states reached an agreement to use the interest earned on some 210 billion euros in Russian central bank assets for military support for Ukraine and rebuilding efforts in the war-torn country.
The money, most of which is held in Belgium, was frozen as part of sanctions packages in retaliation for Moscow's full-scale invasion.
Brussels estimates the interest on those assets could provide about three billion euros a year.
"The EU stands with Ukraine. Today we transfer 1.5 billion euros in proceeds from immobilised Russian assets to the defence and reconstruction of Ukraine," European Commission President Ursula von der Leyen said in a statement on Friday.
The EU stands with Ukraine.— Ursula von der Leyen (@vonderleyen) Today we transfer €1.5 billion in proceeds from immobilised Russian assets to the defence and reconstruction of Ukraine. There is no better symbol or use for the Kremlin's money than to make Ukraine and all of Europe a safer place to live. pic.twitter.com/keDyf9DzzdJuly 26, 2024
"There is no better symbol or use for the Kremlin's money than to make Ukraine and all of Europe a safer place to live."
Ukrainian Prime Minister Denys Shmyhal thanked von der Leyen and the EU for their "steadfast support and this significant contribution to Ukraine's defence and reconstruction".
"Together, we are turning adversity into strength and building a safer, more resilient Europe," he said.
Kremlin spokesman Dmitry Peskov said Russia would carefully consider how to respond to the transfer.
In a call with reporters, he said the EU's move was illegal and Russia would take "well-thought-out actions" in response.
"Such steps by the European Commission will not remain unanswered," Peskov said.
Ukraine is worried that without financial support, Russia might further its advances in the east. (AP PHOTO)
Russia has repeatedly threatened retaliation to any use of frozen Russian assets to finance Ukraine.
The EU's move comes days after Moscow announced it had recaptured two villages in Eastern Ukraine.
A recent push by Kremlin forces in eastern and northeastern Ukraine has made incremental gains and Kyiv is worried that without financial support, Russia might advance further.
EU headquarters said that 90 per cent of the money would be put into a special fund known as the European Peace Facility that many EU countries already use to get reimbursed for arms and ammunition they send to Ukraine.
The other 10 pert cent would be put into the EU budget.
The programs this money funds would help to bolster Ukraine's defence industry or to help with reconstruction, should some countries object to their share being used for military purposes.
with Reuters
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