EU envoys agree to use profits from frozen Russian assets for Ukraine, sources say

EU ambassadors have agreed on a law to use windfall profits generated from Russian central bank assets frozen in the bloc for Ukraine's defence, Belgium said in a post on X on Wednesday.

EU ambassadors have agreed on a law to use windfall profits generated from Russian central bank assets frozen in the bloc for Ukraine's defence, Belgium said in a post on X on Wednesday. European leaders still need to approve the text that will see 90% of the proceeds go into an EU-run fund for military aid for Ukraine, with the other 10% going to support Kyiv in other way, four EU diplomat sources said.

The Group of Seven countries (G7) froze some $300 billion worth of Russian financial assets soon after Moscow's invasion of Ukraine in 2022. Since then, the EU and other G7 countries have fiercely debated how and whether to use the funds to help Ukraine. Earlier this year, EU leaders agreed to ringfence the windfall profits for Ukraine, estimating it will add up to 15-20 billion euros ($37.63 billion) by 2027. That includes around 3 billion euros ($3.22 billion) this year, the first 1 billion of which could be disbursed as soon as July, European Commission President Ursula von der Leyen previously said.

Belgium's securities settlement house Euroclear handles the bulk of the assets immobilised in the EU. Three of the sources said Euroclear's management fee was reduced to 0.3% to free up more cash for Ukraine. ($1 = 0.9302 euros)