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Frozen Russian assets: what changed by 27 July 2024
Summary
A look back at the security and financial developments reported in the days around 27 July 2024, from the first EU transfer of frozen-asset proceeds to a downgrade of Ukraine's credit rating.
What did the final days of July 2024 mean for Ukraine's finances and its security backdrop? By 27 July 2024, three developments reported over the preceding days had set the tone.
On 26 July 2024, the European Union sent its first transfer of €1.5 billion (US$1.63 billion) in proceeds from frozen Russian assets to Ukraine. The money was intended to support military and infrastructure needs. The Kremlin denounced the transfer as illegal under international law and pledged legal retaliation.
A day earlier, on 25 July 2024, Fitch Ratings downgraded Ukraine's credit rating from "CC" to "C". The agency pointed to the country's need to restructure US$20 billion in international bonds held by foreign investors, a step that increased the risk of default.
Also on 25 July 2024, a German man sentenced to death in Belarus for photographing Belarusian military sites in Ukraine appeared on television. He urged Belarusian president Alexander Lukashenko to pardon him.
A mixed picture
Taken together, the reports showed Western governments finding new ways to channel funds to Kyiv, even as a ratings agency flagged the pressure on Ukraine's debt. The Russian reaction to the asset transfer, with its promise of legal action, indicated that the dispute over the frozen funds would continue beyond the first payment.
