In a significant development, the European Commission has announced plans for the first disbursement of superprofits derived from the use of frozen Russian assets within the European Union. This initial payment, expected in July 2024, marks a critical step in the EU's broader strategy of managing these assets.
Details of the Disbursement
Vice-President of the European Commission, Valdis Dombrovskis, welcomed the European Council's decision that paves the way for this landmark financial maneuver. "Speed remains a crucial factor, and the Commission will continue to exert all efforts to ensure the first payment is executed by July," Dombrovskis stated.
The Commission clarified that the formal decision regarding the Russian assets would take effect following its publication in the Official Journal of the EU. "The resources derived from Russian assets will be available to support Ukraine, starting in July 2024, with disbursements scheduled biannually," noted a Commission spokesperson.
In 2024, all funds accrued from Russian assets will be directed to the Ukraine Facility, a four-year program designed to provide economic assistance to Ukraine. According to the European Commission's statement, these amounts are expected to total between 2.5 to 3 billion euros.
Allocation of the Funds
As previously reported by the European Council, 90% of these funds will be allocated to the European Peace Facility for providing military support to Ukraine. The remaining 10% will be channeled into the EU's budget to aid in recovery efforts.
Legal Framework and Future Steps
Recall that in February, the EU agreed on another crucial phase in its plan to utilize frozen Russian assets. This phase dealt with the legal rules governing the storage and handling of superprofits from these assets.
Continued Support and Impact
This strategic use of frozen Russian assets not only aims to provide immediate financial aid to Ukraine but also reflects the EU's commitment to leveraging available resources for peace and reconstruction efforts in the region. The decision underscores the European Union's proactive stance in responding to the ongoing crisis, ensuring that assets that are no longer actively contributing to the Russian economy are instead used to support stability and recovery in Ukraine.
