EU Allocates Over €1 Billion from Frozen Russian Assets to Ukraine Defense

The European Union has been channeling frozen Russian assets to support Ukraine's defense and reconstruction amid ongoing conflict and geopolitical tensions. Euroclear, a Brussels-based institution holding €183 billion of Russian sovereign funds, is at the center of debates on using these assets to rebuild Ukraine, with support from EU officials and Nobel laureates urging governments to release the funds for reconstruction and compensation. The EU has committed €1 billion from these frozen assets to bolster Ukraine's air defense systems and purchase domestically produced weaponry, following the 'Danish model' which enhances Ukraine's defense industry capacity. Denmark leads this initiative, planning to allocate approximately €830 million for military donations through Ukraine’s defense industry in 2025, enabling faster adaptation to Ukraine's needs and increased local production, such as the 2S22 Bohdana artillery vehicles. Additional EU funding of €900 million is planned to further support Ukraine’s armed forces, with other countries like France and Germany contributing through specialized support and strategic arms supplies. Despite ongoing Russian attacks, Ukrainian officials emphasize the importance of continued Western support, with diplomatic efforts also focusing on ceasefire discussions between Ukraine and Turkey.