BRUSSELS/VIENNA/PRAGUE - The European Union (EU) announced on Friday that it has transferred 1.5 billion euros(about $1.62 billion) worth of frozen Russian assets to support Ukraine.

The diversion of funds was made possible after the EU adopted a set of legal acts in May, allowing the use of these net profits for Ukraine's benefit.

In a statement, the EU said this was the first payment derived from immobilized Russian assets. The funds will be allocated through the European Peace Facility and to the Ukraine Facility.

The 1.4 billion euros allocated to the European Peace Facility will be used to finance the acquisition of priority military equipment, including air defense systems and artillery ammunition, said Josep Borrell, the EU's high representative for foreign affairs.

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"There is no better symbol or use for the Kremlin's money than to make Ukraine and all of Europe a safer place to live," European Commission President Ursula von der Leyen said.

The Kremlin has condemned the EU's decision as illegal.

"This is certainly a reason for thoughtful actions in response to such illegal decisions that are being implemented by the European Union," Kremlin spokesman Dmitry Peskov said, warning that the move will not go unanswered.  

Concerns over Zaporizhzhia nuclear safety

The International Atomic Energy Agency (IAEA) on Friday reiterated its concerns over the lingering "highly challenging" nuclear safety and security situation at the Zaporizhzhia nuclear power plant (ZNPP).

IAEA Director-General Rafael Grossi noted in a statement the difficulty of ensuring adequate maintenance of key safety systems and other vital equipment at the ZNPP during the ongoing Russia-Ukraine conflict.

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"At all nuclear power plants around the world, maintenance is essential to prevent the degradation of reactor structures, systems, and components... if not conducted regularly and comprehensively, it could further increase the risk of a nuclear accident in the future," Grossi warned.

Oil transit dispute

Slovakia and Hungary have sought to resolve a dispute with Ukraine over its recent decision to block the transit of oil supplies from the Russian company Lukoil to the two EU member states.

In a telephone conversation on Friday, Slovakia's Prime Minister Robert Fico proposed a technical solution to his Ukrainian counterpart Denys Shmyhal, regarding the Lukoil oil transit via Ukraine.

Fico's office said the proposed scheme would require the participation of several countries, including Slovakia, and noted that it is crucial for Bratislava-based refiner Slovnaft that the transit of at least a part of the Russian oil supplies be resumed, as alternative sources of oil are more expensive and may not be suitable from the technological point of view.

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Intensive negotiations are expected to take place at the highest political and technical levels in the coming hours and days.

Meanwhile, Hungary has also been exploring options to resolve the oil transit dispute.

"If the situation is not resolved, there will be a fuel shortage," Gergely Gulyas, minister in charge of the Hungarian Prime Minister's Office, told a press conference on Friday. He added that there was no reason to panic given the high oil stock levels, but the situation needed to be resolved by September.

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"One solution is for Ukraine to admit that it cannot do this to two EU member states," he said.

"Another solution is for the European Commission to help us, and the third is that we find a legal loophole that will allow (Russian) oil to be transported by someone who is not subject to sanctions."

The EU in 2022 passed sanctions on the import of Russian oil into the bloc in response to the Russia-Ukraine conflict. However, a temporary exemption was granted to Slovakia, Hungary and the Czech Republic to allow them time to find other crude sources.