EU Allocates First €1.4B from Frozen Russian Assets for Ukraine's Air Defense Systems, Ammo

The European Union has allocated €1.4 billion from frozen Russian sovereign assets to fund military aid for Ukraine, primarily for air defense systems and ammunition.

This was announced by European Commission Vice President Valdis Dombrovskis during a meeting of the European Parliament. Dombrovskis confirmed that €1.4 billion, derived from the immobilized Russian assets, has been transferred through the European Peace Fund to cover essential military supplies, including artillery shells and air defense systems. The EU expects the majority of these deliveries to be completed by the end of 2024.

This follows an earlier statement by EU Foreign Minister Josep Borrell in late August, in which he confirmed that the EU had transferred the first €1.4 billion to support Ukraine's defense efforts. In response, Kremlin spokesman Dmitry Peskov condemned the EU's actions, labeling them as theft and warning of potential legal consequences.

The freezing of Russian assets came after the start of Russia’s military operation in Ukraine. Since then, the EU and the G7 countries have frozen around €300 billion of Russia’s foreign currency reserves, with more than €200 billion held within EU institutions, primarily in Belgium's Euroclear, one of the largest clearing and settlement systems globally.

The European Union and its member states have provided €118 billion in aid to Ukraine since Russia's military operation began, with nearly one-third (€43.5 billion) allocated for military support, according to European Commission Deputy Head Valdis Dombrovskis.

The Pentagon reported spending $5.3 billion since 2022 to boost weapons production for Ukraine. U.S. production has risen from 14,400 155mm shells, 21 Patriot missile systems, and five HIMARS systems per month to 40,000 shells, eight HIMARS, and 42 Patriot systems per month.