Redistribution of finances: EU to give money earmarked for Russia and Belarus to Ukraine

The European Commission has decided to reallocate €135 million from the Neighborhood, Development and International Cooperation Instrument to programs for Ukraine and Moldova. Previously, these funds were intended to finance the Interreg NEXT programs with Russia and Belarus for the period 2021-2027.

This was reported by the press service of the European Commission on August 16.

"This decision is the result of Russia's brutal war against Ukraine. We are pleased that the funds originally earmarked for this cooperation will now be used to support EU programs with Ukraine and Moldova. This will help to strengthen cooperation between EU regions and local partners from both countries," said Commissioner for Cohesion and Reforms Elisa Ferreira.

Ukraine and Moldova will receive €135 million to implement Interreg programs, which include the development of cross-border transport links, healthcare services, educational and research projects, social integration programs, and institutional capacity building for the public authorities of Ukraine and Moldova.

It is worth noting that the European Commission suspended cooperation with Russia and Belarus under the Interreg programs after Russia's invasion of Ukraine. This allowed the reallocation of 26 million euros to support cooperation programs with Ukraine and Moldova. The new decision provides for further reallocation of the remaining funding for the period 2021-2027.

As a reminder, the European Union countries are discussing the possibility of transferring to Ukraine the profits earned from frozen Russian assets. Assets worth €196.6 billion were considered, including €180 billion worth of assets of the Central Bank of Russia, which generate income through coupon payments and redemptions.

However, according to Bloomberg, some EU member states believe it is impossible to legally confiscate these assets. Instead, the possibility of temporarily using the blocked funds is being considered.