Spyke
Pommes_für_dein_Balg
feddit.org

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.

71
ShadowRamreply
fedia.io

Which in turn, is still 'paying' Ukraine.

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

47
plugereply
piefed.social

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.

25
Honytawkreply
discuss.tchncs.de

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

14
TheBlackLoungereply
lemmy.zip

It's profits from frozen funds. They've been doing this since the start of the war.

5
Bazellreply
lemmy.zip

I would love to see reactions of .ml and .hexbear users to this.

4

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