Josep Borrell, the EU’s high representative for foreign and security policy, has disclosed that Ukraine will get the first tranche of military aid from frozen Russian assets next week, after officials devised a workaround to avoid a Hungarian veto.

He said that since Hungary abstained from the previous agreement on allocating revenues from frozen Russian assets, it should not be part of the decision on the use of this money.

Borrell added that this workaround is complex, as any legal solution, but it works.

The EU agreed in May to seize an estimated €4.4bn interest on €191 bn Russian assets immobilised by western sanctions that have been frozen inside the union, at Belgium’s Euroclear.

The money will fund weapons and aid for Ukraine, spread over several payments.

However, diplomats say that Hungary has been holding up approval of the necessary legal measures.

Hungary maintains warmer relations with Moscow than any other EU country. It does not give arms to Ukraine and Hungarian Prime Minister, Viktor Orban has criticised other EU and NATO members for doing so, saying they are fueling the war.

Hungary has long opposed the EU collectively providing military support to Ukraine and is also blocking seven other decisions related to arming Kyiv, worth about €6.6 billion.

The legal procedure to avoid a Hungarian veto could help unlock a G7 plan to lend Ukraine $50bn based on the frozen assets.

Speaking to reporters ahead of a meeting of EU foreign ministers on Monday, June 24, 2024, Borrell said, “I cannot have this money in my pocket,” adding that the money is for military support for Ukraine and the “decision has to be taken immediately avoiding any kind of blockage.”

“We have these revenues coming from the frozen assets and we have to look for a way in order to use them, avoiding any kind of blockage.

“We have a process in order to make this work quickly. The first tranche of money will come next week, in July. The second will come some months later.”
Josep Borrell

Borrell added, “Ukraine needs more help and needs more help now before the summer.”

EU Adopts 14^th Package Of Sanctions Against Russia

Also on Monday, the EU adopted its 14th package of economic and individual restrictive measures against Russia.

These measures are designed to target high-value sectors of the Russian economy, like energy, finance and trade, and make it ever more difficult to circumvent EU sanctions.

Among the measures is the targeting of Moscow’s shadow fleet of tankers moving liquefied natural gas (LNG) through Europe.

The EU estimates that about 4-to-6 billion cubic meters of Russian LNG was shipped to third countries via EU ports last year. Russia is suspected of running the fleet to evade sanctions and keep up the flow of energy earnings so that it can finance the war.

The EU council said in a press release that the EU has adopted a measure targeting specific vessels contributing to Russia’s warfare against Ukraine, which are subject to a port access ban and ban on provision of services.

It added that these vessels can be designated for various reasons such as the transport of military equipment for Russia, the transport of stolen Ukrainian grain, and support in the development of Russia’s energy sector, for instance through the transport of LNG components or transshipments of LNG.

Last month, the UK imposed its first sanctions targeting vessels in Vladimir Putin’s “shadow fleet” that it said was used to circumvent western sanctions on the trade in Russian oil.

Several companies were also added to the EU’s list on Monday, including a number of them in China, Turkey and the United Arab Emirates.

Many are accused of circumventing sanctions or providing sensitive equipment to Russia.