BRUSSELS (AP) — European Union countries announced Tuesday that they have reached a deal to use profits from frozen Russian assets to provide military aid to Ukraine and help rebuild the war-torn country.
The 27-nation EU holds about 210 billion euros ($225 billion) in assets from Russia’s central banks, most of which are frozen in Belgium in retaliation for Moscow’s war on Ukraine. It estimates that interest on that money could earn about 3 billion euros ($3.3 billion) annually.
Ukraine is desperate for weapons and ammunition as Russia challenges its military advantage.
EU headquarters said 90% of the money would be put into a special fund known as the European Peace Facility, which many EU countries already use to get compensation for weapons and ammunition they send to Ukraine.
The remaining 10% would go into the EU budget. The programs financed with this money would help strengthen or help rebuild Ukraine’s defense industry, should some countries object to using their share for military purposes.
A small group of member states, especially Hungary, refuses to supply weapons to Ukraine.
Officials have said an initial tranche of the money could be available in July.
