EC to propose transferring up to €27bn in profits from frozen assets to Ukraine
14 March 2024 20:15
The European Commission is preparing to put forward a proposal to confiscate up to €27bn of profits from Russian sovereign assets frozen in Europe for Ukraine.
This was reported by Kommersant ukrainskyi
with reference to The Guardian.
European Commission officials are ready to put forward a legally sound proposal for consideration by EU member states, possibly before the EU leaders’ summit in Brussels on 21 March.
About $300 billion belonging to the Russian central bank has been frozen in the West, mostly in foreign currency, gold and government bonds. Around 70% of this is held in Euroclear, the Belgian central securities depository, which holds the equivalent of €190 billion.
Deposits held in Europe are likely to generate between €15 billion and €27 billion in after-tax returns by the end of 2027, depending on how global interest rates move, a senior EU official said.
While officials are hopeful of an agreement on the withdrawal of the profits, they do not yet expect an agreement on how the money should be used, as some states oppose using it to fund the Ukrainian army, preferring it to be spent on reconstruction and humanitarian efforts.
According to the sources, the European Commission will not be proposing any options for the use of the money.
“This means that they may agree in principle to use the proceeds, but then hold further discussions on where the money can go according to the constitution for each member state,” the source said.
According to him, the process has gained momentum, and the EU expects that after the initial decision is made, the matter will move forward.
As a reminder, former World Bank chief Robert Zoellick called on Western countries not to be afraid to use Russia’s frozen assets for the benefit of Ukraine, emphasising the strategic advantage of such actions.
