EU transfers €1.5 billion of proceeds from frozen Russian assets to Ukraine | Economy News

The President of the European Commission said Ursula von der Leyen -On Friday, the European Union will transfer 1.5 billion euros ($1.63 billion) in proceeds from frozen Russian assets to Ukraine.

Western countries froze nearly $300 billion in Russian sovereign assets after Moscow sent troops into Ukraine in February 2022.

Last month, the Group of Seven agreed toEuropean UnionTo use the interest earned on frozen Russian assets to back a $50 billion loan to Ukraine, to help it defend itself against Moscow. Russia has vowed to take legal action.

“Today we are transferring 1.5 billion euros of proceeds from frozen Russian assets to the defence and reconstruction of Ukraine. There is no better signal or use of the Kremlin’s money than to make Ukraine and all of Europe a safer place to live,” von der Leyen said on the social media platform X.

Ukrainian Prime Minister Denys Shmyhal thanked the EU, saying: “This is a significant contribution to the defence and reconstruction of Ukraine. Together, we turn adversity into a blessing and make Europe safer and more resilient.”

Russia responded by saying it would carefully consider how to respond to the transfer of proceeds from its frozen assets to Ukraine.

Kremlin spokesman Dmitry Peskov said in a call with reporters that the EU’s move was “illegal” and that Russia would take “carefully considered measures.”

“These steps taken by the European Commission will not go unanswered,” he added.

Moscow has repeatedly threatened to respond to any use of its frozen assets to finance Ukraine.