EU has allocated €400 million in proceeds from frozen Russian assets for production of Ukrainian-made Bohdana howitzers – EU ambassador

The EU is now allocating proceeds from frozen Russian assets to purchase weapons for Ukraine. €400 million from the first tranche has been used to finance Ukrainian defence companies and has already paid for the production of Ukrainian-made Bohdana howitzers.

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

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

Quote: "But what is much more important is that €400 million of this amount is 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 €400 million through Denmark to the Ukrainian defence industry, which is, I think, quite a sizable sum. You actually have poetic justice, right? These are Russian assets that pay for [Ukrainian] howitzers," the ambassador said.

Mathernová explained that Denmark had added some of its own money to the €400 million and placed a large order with a Ukrainian military factory.

She said that in the next tranche, 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 [items] 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’m particularly proud of because I was one of the very strong advocates of this system. And I’m very happy it actually is happening now," the ambassador said.

Background:

• Ukraine has repeatedly called on its partners to allocate funds so that the weapons it needs can be produced by the Ukrainian defence industry.
• Watch the full interview with Katarína Mathernová about winter preparations in Ukraine, funding for weapons, and the country's EU accession.

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