European Union has transferred 1.5 billion euros in proceeds from frozen Russian assets to Ukraine, European Commission President Ursula von der Leyen announced on the social media platform X on Friday.
“Today we transfer 1.5 billion euros in proceeds from immobilized Russian assets to the defense 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,” von der Leyen said.
Earlier this week, the US Treasury Department directed the nation’s banking industry to start disclosing its holdings of Russian assets. The goal is to eventually seize those billions of dollars in assets and sell them to aid Ukraine’s devastated economy.
The EU stands with Ukraine.
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/keDyf9Dzzd
— Ursula von der Leyen (@vonderleyen) July 26, 2024
The disclosure requirement is mandated under a new law passed by Congress earlier this year, known as the REPO Act. This law grants the US government the authority to seize Russian state assets held by US banks, with the aim of selling them and providing the funds to Ukraine. Although most Russian assets are held in Europe, the US banking system is estimated to hold up to $6 billion in Russian assets in trust.
Banks are required to report Russian assets on their books to the Office of Foreign Assets Control by August 2. Any newly discovered Russian assets after the deadline must be reported within 10 days, according to the Treasury Department.
Russia’s war in Ukraine, which began in February 2022, has resulted in tens of thousands of deaths and caused significant devastation to Ukraine’s economy and infrastructure. In February, the World Bank estimated that Ukraine would need $486 billion for recovery and reconstruction, a figure that has only increased as the conflict continues.
The US, Canada, France, Germany, Italy, the UK, and Japan collectively known as the G7, froze approximately $300 billion worth of Russian assets at the start of the war. These assets included hard currency, gold, and investments in publicly and privately held companies. Discussions on what to do with these frozen assets have been limited until this year, when the idea of forfeiture and liquidation was incorporated into the REPO Act.