The EU refused to transfer €5 billion of proceeds from Russian assets to Ukraine

The EU refused to transfer €5 billion of proceeds from Russian assets to Ukraine

The European Union decided not to transfer to Ukraine 5 billion euros of income received from the investment of frozen Russian assets in 2022-2023. The money will remain with the Brussels securities depository Euroclear as insurance against lawsuits from Moscow, writes Politico.

In an unpublished but received proposal from the European Union, it is stated that the funds will be used to cover “expenses, risks and losses incurred by central depositories of securities… because of the war in Ukraine.” The Ukrainian government opposes this idea, writes Politico.

According to the plans of the European Union, income from the investments of the frozen funds of the Russian Central Bank after deduction of taxes received after February 15, 2024 will be transferred to help Ukraine.

In March, the European Commission proposed using 90 percent of the proceeds to pay for weapons for Ukraine through the European Peace Fund. Another 10 percent will go to the EU budget for support programs for Ukraine. This scheme still needs to be approved by a unanimous decision of the EU Council, which includes representatives of all bloc countries.



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