In a bold move, the European Union transferred 4 billion euros 💶 of frozen Russian assets to Ukraine’s coffers on Wednesday, marking a major boost in Kyiv’s financial toolkit. This landmark loan, sourced from immobilized Russian Central Bank securities held in Europe, underscores the EU’s commitment to support Ukraine amid ongoing tensions.
But the Kremlin didn’t stay quiet. Spokesperson Dmitry Peskov slammed the move as “illegal seizure”—or, in his words, “theft”—and vowed that individuals or nations involved would be held accountable. He warned that such actions could undermine confidence in Europe’s banking system and the euro itself. 😬
Behind the scenes, Brussels is drafting a broader “reparation loan” plan: a potential 140 billion-euro package that Kyiv would repay only after securing compensation from Moscow through a peace deal. With around 300 billion euros of Russian assets frozen worldwide—210 billion of which sits in Europe—there’s plenty of collateral. But unanimity among all 27 EU members is still pending.
Some worry about the fallout. Belgium’s leaders and even European Central Bank President Christine Lagarde caution that seizing state-immune assets could scare off other central banks from stashing reserves in euros—jeopardizing the euro’s status as a global reserve currency. 😬💶
Amid these debates, European Commission President Ursula von der Leyen announced an extra 2 billion-euro commitment to supply drones 🚀 to Ukraine. “This will help Kyiv scale up its capabilities and give the EU a chance to learn from cutting-edge tech,” she said.
So far, the EU has funneled nearly 178 billion euros in aid to Ukraine since February 2022, cementing its role as the single largest backer in Europe. As Kyiv navigates war and diplomacy, Brussels remains at the forefront—balancing financial firepower with geopolitical risks. 🔥🤝
Reference(s):
EU transfers frozen Russian funds to Kyiv amid Moscows threats
cgtn.com
