France to utilise share from frozen Russian assets for Ukraine aid

EU has frozen around €200 billion in Russian assets since Russia's invasion of Ukraine in 2022

France will use a share of 1.4 billion euros ($1.5 billion) in revenues from frozen Russian assets to finance purchase of military equipment for Ukraine, the defence ministry said on Friday.

“Alongside other (EU) member states, the ministry… will take part in implementing the new support measure for Ukraine from the European Peace Facility,” it said in a statement.

The European Commission in Brussels had given the go-ahead for “swift procurement of priority material from French industry” including ammunition, artillery and air defences, the ministry added.

Around 200 billion euros of Russian assets have been frozen across the 27-nation European Union since Russia’s invasion of its neighbour Ukraine in 2022.

Around 90 percent of them are held in Belgium, where international clearinghouse and securities depository Euroclear is headquartered.

EU member states agreed in May to use the interest generated by seized assets belonging to the Russian central bank to support Kyiv.

A first tranche of 1.5 billion euros was green-lighted in July.

The interest revenue is expected to amount to between 2.5 and 3.0 billion euros per year to arm Ukraine and cover the costs of post-war reconstruction.

Russia has denounced the EU decision as “illegal”.

At a June meeting, G7 leaders reached a “political agreement” on a similar arrangement at a meeting in Italy.