EU allocates 400 million euros from frozen Russian assets for production of Ukrainian Bohdana howitzers – EU ambassador

A total of 400 million euros from the first tranche of revenues from frozen Russian assets, which the EU allocated for weapons for Ukraine, were used to finance Ukrainian defence companies: the production of Ukrainian howitzers Bohdana has already been paid for.

Source: Katarína Mathernová, Ambassador of the European Union to Ukraine, in an interview with European Pravda

Details: The diplomat recalled that the EU approved a scheme to use the proceeds of frozen Russian assets for the benefit of Ukraine six months ago. In August, Brussels allocated the first €1.4 billion of these proceeds: several member states received funding for new arms supplies.

Quote: "But what is much more important is 400 million [euros] out of this amount are going to the Ukrainian defence industry system developed by Denmark. Denmark was the first country that has been contracting the delivery of the Bohdana howitzers.

So, we have entrusted the 400 million [euros] through Denmark to the Ukrainian defence industry which is, I think, quite a sizable sum. You actually have a poetic justice, right? These are the Russian assets that pay for the [Ukrainian] howitzers," the ambassador said.

She added that Denmark had contributed some of its own money to the 400 million euro from the Russian assets and thus placed a large order with a Ukrainian military plant.

She said that in the next tranche of frozen Russian assets, an even larger amount is to be allocated to finance the production of weapons directly by the Ukrainian defence industry.

"The plan is that from the next tranche, there is going to be an even bigger amount that will go directly to the Ukrainian defence industry. Because you produce [things] of the same quality for less money, quicker, you cut away the transport and logistics costs, and the companies pay taxes [to Ukraine], so you are helping the economy.

This is something I am particularly proud of because I was one of the very strong advocates of this system. And I am very happy it actually is happening now," the ambassador said.

Background: Ukraine has repeatedly called on its partners to allocate funds for production of the weapons it needs by the Ukrainian defence industry.

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