EU to allocate €1bn from profits of Russian assets for arms orders from Ukrainian defence industry

Kaja Kallas, EU High Representative for Foreign Affairs and Security Policy, and ministers from EU member states have signed a declaration in Lviv expressing their intention to transfer EUR1 billion in profits from frozen Russian assets to Ukraine. Source: European Pravda Details: On 9 May in Lviv, a declaration was signed to transfer EUR1 billion in profits from frozen Russian assets to Ukraine.

The declaration was signed by Kaja Kallas, Danish Minister for Business Morten Bodskov, French Foreign Minister Jean-Noel Barrot and Italian Deputy Foreign Minister Edmondo Cirielli.

"With these funds, the signatories will purchase weapons for the Armed Forces of Ukraine," stated Ukrainian Prime Minister Denys Shmyhal. He later clarified that, in total, the EU will allocate EUR1.9 billion from the profits of Russian assets for the purchase of weapons for Ukraine.

Shmyhal said that over EUR600 million will be directed towards artillery and ammunition, and more than EUR200 million will go towards strengthening Ukrainian air defence. "We sincerely thank the European Union for this forward-looking decision, leadership and support.

Special thanks to Denmark, France, the Netherlands and Italy, which will carry out the procurement of Ukrainian weapons worth EUR1 billion," Shmyhal wrote.

Background:

• In early April, EU Ambassador to Ukraine Katarina Mathernova said the EU would soon receive a second tranche of funds from the profits of immobilised Russian assets, amounting to EUR2.1 billion. "The majority of the funds will be used to purchase weapons, ammunition and air defence systems for Ukraine in the form of grants," she noted.
• In particular, part of the funds will be transferred to EU member states for the purchase of ammunition and air defence systems for Ukraine, and another EUR1 billion will be directed towards orders from the Ukrainian defence industry under the Danish model.
• Mathernova reiterated that the EU had already invested EUR400 million in Ukraine's defence industry in 2024.

  In an interview with European Pravda, she explained that this included, in particular, the production of Bohdana howitzers.

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