“Ukraine needs more help, and it needs it now, before summer,” urged Josep Borrell, the head of European diplomacy, upon arriving at the EU foreign ministers meeting in Luxembourg. European governments approved a first tranche of 1.4 billion euros from the profits of frozen Russian assets held in the EU to finance the purchase of weapons and ammunition for Ukraine, according to EU sources. The decision was made while Hungary’s veto was sidestepped. The money is expected to reach Kyiv starting in July.
“Because Hungary did not participate in the decision, it is not necessary for it to participate in the implementation of the decision,” explained the EU’s high representative for foreign policy about the legal interpretation used by the Council to bypass Hungary’s veto, which has blocked seven other decisions requiring unanimity and a total assistance package of 6.6 billion euros aimed at financing military material for Kyiv.
The Council formally adopted in May the plan to use the benefits from extraordinary revenues generated by frozen Russian assets held by central securities depositaries such as Euroclear, accumulated since February 15. Estimates show that of the 260 billion held in G7 countries, the EU, and Australia, more than two-thirds remain blocked in the EU, mainly in Belgium.
Initially the idea was to use the profits, estimated at about 3 billion annually, for Ukraine’s reconstruction. With arsenals depleted and urgent needs mounting, the debate quickly shifted toward arming the Ukrainian forces. “We have a process to move quickly. The first tranche of funds will arrive next week, in July. The second tranche will follow a few months later,” Borrell stated on Monday.
Sanc tions on Russian hackers
The day also saw the approval of restrictive measures against six individuals involved in cyberattacks that affect information systems and critical infrastructure, including government operations, healthcare, and banking, as well as the storage or processing of classified information and emergency response equipment in member states. In total, 14 people and 4 entities have had their assets frozen and face travel bans within the EU’s cyber sanctions regime.
Among those sanctioned are two members of the Callisto group, a unit of military intelligence officers conducting cyber operations against EU countries and others through ongoing phishing campaigns aimed at stealing sensitive data in critical sectors, including defense and foreign affairs. The EU also targets two members of the Armageddon group, linked to the Russian FSB and responsible for phishing and malware campaigns with significant impact in several EU states and Ukraine. Finally, Mikhail Tsarev and Maksim Galochkin are named for their roles in deploying the Conti and TrickBot malware and for involvement with the Wizard Spider group, linked to substantial economic damage.
Measures against Russian LNG
The Twenty-Seven also confirmed the ambassadors’ agreement on the fourteenth sanctions round targeting Russia for its war in Ukraine, with a focus on curbing the financing of Moscow’s war machine. The package targets the liquefied natural gas sector for the first time by banning port-based transshipment activities to third countries. The measure covers ship-to-ship and ship-to-land transfers, including reloading operations, but only affects re-exports, not imports. The package also prohibits new investments and the supply of goods, technology, and services necessary to complete LNG projects under construction, such as Arctic LNG 2 and Murmansk LNG. Additional restrictions apply to the import of Russian LNG through EU terminals not connected to the gas network.
Moreover, for the first time, the 27 sanction 27 vessels accused of supporting Russia’s war in Ukraine by transporting military material, stolen grain from Ukraine, or LNG transshipments. These ships are barred from European ports and from offering services. The move targets what is described as Putin’s “dark fleet,” which evades EU price caps and oil limits and employs deceptive transport practices.
The round also widens the ban on flights within the EU and road transport to cover operators who are at least 25 percent owned by a Russian individual or entity. Finally, the package adds 69 individuals and 47 companies to the EU blacklist, freezing assets and prohibiting entry to the EU, and expands export and import controls on dual-use, civil, and military goods. It also tightens financial sanctions by prohibiting EU entities operating outside Russia from using the SPFS messaging system, the Russian alternative to Swift.
Lastly, to combat misinformation, the Twenty-Six have agreed that political parties, foundations, non-governmental organizations including think tanks, and media service providers within the EU will no longer receive funding from the Russian state or its representatives.