Some of the profits made in the European Union (EU) from frozen Russian assets will be used to buy ammunition for Ukraine because of the Russian invasion, the Czech Republic, which will be responsible for such purchases, said on Tuesday.
“The Czech Republic has received another significant source of funds, which it will use to finance the supply of much-needed large-caliber ammunition to Ukraine. These are proceeds from funds frozen in the EU countries to the Central Bank of Russia,” the Czech government said in a statement.
A source in the Czech executive explained to Lusa that the initiative belongs to the Ministry of Defense, which will be responsible for using the emergency funds collected by the countries, which in this regard will amount to 1.4 billion euros, for the purchase of these large-caliber ammunition and deploying them in Ukraine based on its military needs.
“I am pleased that the Czech Republic is participating in this new form of military support for Ukraine. This is another demonstration of the confidence of our foreign partners in the effectiveness of the Czech ammunition initiative, based on the success of this initiative, which the European Union contacted us a few weeks ago to use the proceeds from frozen Russian assets to purchase ammunition for Ukraine,” explained Defense Minister Jana Černochová, quoted in the press release.
The person in charge was referring to a previous initiative, organised by the Czech Republic itself, to send ammunition to Ukraine, of which Portugal is a part and has already sent 100 million euros, the Czech government’s special representative for Ukraine, Tomáš Kopečný, said in May.
Without giving further details, a Prague spokesman now says that the deliveries of these munitions, financed by income from the frozen assets of the Russian Central Bank, will take place in the coming months.
The announcement came after the European Commission in late July transferred an initial 1.5 billion euros (12 billion by 2027) for defense and reconstruction in Ukraine, backed by profits from frozen Russian assets.
The EU then sent the first payment from the main Russian assets, the windfall from which European operators had received after central securities depositories froze the main Russian sovereign assets.
The funds are channelled through the European Peacekeeping Mechanism and the Ukraine Support Mechanism to support Ukraine’s military capabilities and to support the country’s reconstruction.
Following EU approval at the end of May, 90% is expected to be allocated to Ukraine through the European Peacekeeping Mechanism (which finances the purchase of weapons and defensive ammunition) and 10% through the community budget (non-military support). This comes after one of the sanctions imposed on Russia for its invasion of Ukraine included a ban on operations related to the management of the Russian central bank’s reserves and assets, with the remaining relevant assets held by financial institutions in member states frozen.
These revenues are expected to enable Ukraine to mobilise around three billion euros a year, a total of 12 billion over the next four years.
The Russian military offensive into Ukraine, which began on February 24, 2022, has plunged Europe into its most serious security crisis since World War II.
Author: Lusa
Source: CM Jornal
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