The European Union has transferred the first €1.5 billion from the proceeds of immobilized Russian assets to military support for Ukraine.

The European Commission announced this on Friday, July 26.

“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,” European Commission President Ursula von der Leyen wrote on Twitter.

The money will now be channeled through the European Peace Facility and to the Ukraine Facility to support Ukraine’s military capabilities as well as to support the country’s reconstruction.

The European Commission reminded that the immobilization of the Russian Central Bank’s assets was a result of EU sanctions against Russia, adopted in the wake of its war of aggression against Ukraine. The extraordinary revenues generated in this context by the EU operators do not belong to Russia and are held by CSDs. The EU has now started to channel these revenues to Ukraine.

On Tuesday, July 23, Ukrainian Prime Minister Denys Shmyhal announced the allocation of funds received from the proceeds of immobilized Russian assets. At the time, he stated that the funds would be used to purchase weapons for the Ukrainian army.

According to him, the funds will be used to purchase the most necessary weapons, air defense equipment, and artillery shells.

In addition, part of these funds will be used to develop the Ukrainian defense industry.

In July, Ukraine will receive the first €1.5 billion in proceeds from immobilized Russian assets from Belgium, which will be used to purchase weapons.

Most of Russia’s assets are represented by securities and investments. Of these, almost €200 billion are managed by the Belgian financial company Euroclear. Therefore, Belgium imposed a 25% income tax on them.

On May 21, the Council of the European Union approved the use of proceeds from immobilized Russian assets to support Ukraine’s defense and reconstruction.

About 90% of the proceeds from the immobilized assets of the Russian Federation will be directed to the European Peace Fund, which provides military assistance to Ukraine, including weapons. The remaining 10% will be used to provide other support to Ukraine.