The EU said the funds would help support Ukraine’s public services and armed forces.
  • Pommes_für_dein_Balg@feddit.orgEnglish
    541·
    20 hours ago

    The European Union is set to transfer Ukraine €1.4 billion in profits generated from frozen Russian central bank assets.
    95% of the proceeds will be used to support Ukraine through the Ukraine Loan Cooperation Mechanism, which helps Kyiv service loans provided by the EU and G7 partners.
    The remaining 5% will be allocated via the European Peace Facility to address Ukraine’s military and defense needs.

    Just to clarify: They’re not taking frozen Russian money and giving it to Ukraine!

    They’re taking the interest generated by the frozen Russian money, and pay 95% of it to themselves and other countries who loaned money to Ukraine.

    No actual money arrives in Ukraine. Only Ukraine’s debt to the EU is reduced by that amount.

    • ShadowRam@fedia.io
      34·
      19 hours ago

      Which in turn, is still ‘paying’ Ukraine.

      This allows Ukraine to borrow more, and/or pay less interest.

    • pluge@piefed.socialEnglish
      15·
      19 hours ago

      pay 95% of it to themselves

      I feel like that’s a little disingenuous. 95% goes toward servicing Ukraine’s loans and 5% goes to direct defense spending.

    • Honytawk@discuss.tchncs.deEnglish
      8·
      19 hours ago

      Well, we wouldn’t want Ukraine to go bankrupt the moment Putin withdraws from Ukrainian soil. Any bit helps.