As Kalniete‘s assistant Elīna Bīviņa informed the LETA agency, in Kalniete’s view, the use of Russia‘s frozen assets for the reconstruction of Ukraine is the right signal to Russian President Vladimir Putin – Russia must be held accountable and made to pay directly for aggression and crimes against Ukraine.
On Tuesday, the EP supported a new macro-financial assistance loan for Ukraine in the amount of 35 billion euros with 518 votes “for”. The proposal was prepared by the European Commission, but it was put to the vote in the parliament by the International Trade Committee, in which Kalniete is the shadow reporter of the European People’s Party faction on Ukrainian issues.
“The vote on the financial allocation to Ukraine is crucial, but Europe must do even more – the leaders of the member states must confiscate Russia’s frozen assets and use them to arm and rebuild Ukraine. Putin must face the consequences of his actions,” Kalniete emphasized in the EP debate.
The macro-financial assistance loan, which received the support of the EP, is the contribution of the European Union (EU) to the initiative of the G7 countries approved this year, which aims to provide Ukraine with up to 50 billion US dollars, or approximately 45 billion euros. Repayment of the loan will be provided by extraordinary profits from the frozen assets of the Central Bank of Russia.
Addressing the EP, Kalniete emphasized that this financial support is very important to meet Ukraine’s urgent budget needs, including repaying the EU’s emergency macro-financial loan, as well as the bilateral loans of the G7 countries.
“Russia continues its brutal war of aggression against Ukraine, destroying the country’s energy infrastructure with missiles and drones every day and taking the lives of innocent people. Ukraine needs our unwavering support both financially and militarily – the third winter of the war awaits the Ukrainians, which will be the most difficult so far. because Russia has destroyed more than half of the country’s energy resources,” said the deputy in the debate.
As the LETA agency was informed in Vaider’s office, the MEP emphasized that the amount of the loan, together with the funds allocated by the G7 countries, will be 45 billion euros, besides, this loan will not have to be returned to the Ukrainians, it will be returned by the Russians.
“Revenues from the assets of the Central Bank of Russia, frozen in banks in Europe and other countries, will be used to repay this loan,” explains the MEP.
Vaider points out that approximately 210 billion euros of assets of the Russian central bank, which is much more than the EU’s annual budget, have been frozen in European banks.
She explains that for a long time the EU was unable to make a decision on the use of these assets to support Ukraine, but now a decision has been made to use the profits that these assets bring to Ukraine.
“Without undue delay, Ukraine must also hand over the frozen assets themselves, as well as confiscate the frozen savings, yachts, and houses of the Russian oligarchs. Only in this way will they be able to get the 400 billion necessary for the victory and reconstruction of Ukraine,” Vaider emphasized.
Due to the sanctions imposed by the EU against Russia, since February 2022, the assets of the Central Bank of Russia, which are located in the financial institutions of the member states and whose value is approximately 210 billion euros, have been frozen.
Prohibition of transactions in these assets creates an emergency stockpile of cash that brings profit. On an annual basis and depending on the level of interest rates, the windfall is currently estimated at 2.5 to 3 billion euros per year. In May 2024, the Council of the EU decided to use these extraordinary revenues for the benefit of Ukraine.
Since the start of the war, the EU and member states have provided Ukraine with €118.3 billion in grants and loans, supporting Ukraine’s military operations and its economy, helping to maintain basic services and offering early reconstruction, humanitarian aid and assistance to those fleeing the war.