The Bottom Line Upfront

European Union nations have reached a tentative breakthrough deal to provide Ukraine with additional funds for arms and ammunition. The funds, amounting to $3.2 billion per year, will come from the profits raised from frozen Russian central bank assets held in the EU.

The Breakdown

  • The agreement will significantly boost Ukraine's military capabilities as it faces ongoing tensions with Russia, potentially deterring further aggression and supporting Ukraine's defense efforts.
  • The deal was reached among the 27 EU ambassadors after weeks of tough negotiations.
  • The funds will be sourced from the approximately $225 billion in Russian central bank assets held by the EU, with most of it frozen in Belgium.
  • This breakthrough agreement will provide Ukraine with substantial financial support for its defense needs, helping to strengthen its position in the face of Russian aggression. The allocation of funds from frozen Russian assets demonstrates the EU's commitment to supporting Ukraine and sends a clear message to Russia about the consequences of its actions.