Ukraine will receive income from Russian assets: the EU has decided on the date

The EU has drafted a bill to direct the profits of the Russian central bank to Ukraine. The proposal stipulates that Ukraine will start receiving funds in July. The funds will be used to supply weapons and develop the defense industry.

This was reported by Bloomberg. The proposals, which require the support of all member states, would introduce a windfall tax on profits earned from seized Russian reserves to use approximately 3 billion euros ($3.3 billion) a year to finance arms supplies to Ukraine .

About 260 billion euros of Russian central bank assets, mostly in the form of securities and cash, have been seized by the G7 countries, the EU, and Australia, with more than two-thirds of them blocked in the EU.

A portion of the profits will remain with the central securities depositories, which hold reserves to cover asset management costs and to deal with any risks, including potential retaliation from Russia. The related expenses and income tax will also be deducted from the income before it is transferred. According to some estimates, this will leave about EUR 3 billion of net profit per year.

The vast majority of the funds have been frozen through the Belgian clearinghouse Euroclear, where they made about €4.4 billion in profits last year. These proposals will be discussed by EU leaders during their meeting in Brussels later this week.

As OBOZ.UA previously reported:

U.S. Special Representative for Ukraine's Economic Recovery Penny Pritzker explained that the process of confiscating Russian assets will require a collective decision of all countries that have frozen Russian funds in their financial institutions. It will take time, so we should not expect it to happen quickly.

The International Monetary Fund has stated that decisions to confiscate Russian assets should be made by the relevant authorities in the countries where they are located. The IMF will monitor developments to assess the impact on the international financial system.

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