It came after a year of wrangling over using the Frozen Assets, but the €1.5 billion sent is just a smidgen of around €200 billion it has locked away.
While 10% will be directed to Reconstruction and Economic Recovery, the remaining 90% is to buy Weapons, through the confusingly named European Peace Facility (EPF), for the Fightback against Moscow’s Aggression.
Unlike the U.S., which passed a Law Not yet Enacted, to allow All of Russia’s Immobilized Assets to be Seized for Ukraine’s benefit, Brussels fears such a Draconian move would enmesh it in a lengthy Legal Battle and Prompt other Countries, to Sell their Euro Investments, Destabilizing the Currency.
Instead, a Compromise is only using the Interest earned from the Assets, which are held mostly by a Brussels Clearing House called Euroclear. Disagreements over its Management Fees and Belgian Taxes on Corporate Profits also held up a Deal.
“There is no better symbol or use for the Kremlin's money than to make Ukraine and all of Europe a safer place to live,” said Ursula von der Leyen, the Re-Elected European Commission President, announcing the Transfer.
Reconstruction is getting 10% because EU Members including Austria, Hungary, and Ireland, Refused to Fund Weapons.
The Cash will be Channeled through the existing Ukraine Facility, which hopes to Allocate up to €50 billion over Three years.
The next Seizure looks a long way off, as current Plans to knock on Euroclear’s Door is March 2025.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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