Ukraine to receive €1.5 billion in July from frozen Russian assets

Ukraine is poised to gain approximately €1.5 billion in revenue from frozen Russian assets in the EU by July, European Commission President Ursula von der Leyen announced on Tuesday, June 11, at a conference in Berlin focused on Ukraine's recovery.

Von der Leyen specified that the majority of these funds will be allocated for defence, with 10% dedicated to Ukraine’s reconstruction. "We are leveraging financial power to help Ukraine endure and rebuild," she emphasised.

Additionally, von der Leyen noted that an extra €1.9 billion from the European Fund for Ukraine will be transferred to Kyiv this month. This fund, totalling €50 billion in grants and loans, aims to address both the immediate needs of the Ukrainian state and medium-term goals for the country's reconstruction and modernisation between 2024 and 2027.

Moreover, the EU will enter into agreements with banks amounting to around €1.4 billion to attract private investments into the country, which has been devastated by Russian invasion, the European Commission President indicated.

Speaking at the conference, von der Leyen asserted the necessity of initiating negotiations for Ukraine's entry into the EU by the end of June, emphasizing that Kyiv has taken all necessary steps for this process.

"Kharkiv is Europe. Ukraine is Europe. And our union is your home. Glory to Ukraine and long live Europe!" she concluded.

The two-day conference on Ukraine's reconstruction, held from June 11-12 in Berlin, hosted prominent figures including Ukrainian President Volodymyr Zelensky, German Chancellor Olaf Scholz, and around 2,000 participants from 60 countries. These participants included politicians, representatives of international organisations, businesses, civil society, municipalities, and regions.

By organising the conference with Ukraine, the German government aims to provide a long-term perspective for Ukraine's recovery and stimulate investments. Furthermore, the conference addresses the urgent need for aid due to ongoing Russian attacks.

According to the World Bank, the damage inflicted upon Ukraine by Russia’s military aggression has already reached at least $486 billion. Previous conferences on this topic were held in Lugano, Switzerland in 2022 and in London in 2023.

  War in Ukraine, EU, Russia