The European Commission intends to raise 15 billion euros from Russia's frozen assets to send as financial aid to Ukraine, but the developed plan must be supported by all EU member states.
The European Commission intends to attract 15 billion euros of frozen funds from the Russian Federation for Ukraine
According to the publication's sources, on Tuesday, December 12, Brussels will offer to limit the profit received from Russia's frozen assets in the EU, seeking to eventually withdraw up to 15 billion euros in favour of Ukraine.
The European Commission's plan has been delayed since the summer after several EU member states and the European Central Bank announced legal and financial problems.
However, hesitant attempts by the US and the EU to agree on additional financial support for Ukraine have given new impetus to proposals for profiting from Moscow's frozen funds.
It is important to see how we can use Russian frozen assets and the income from these assets to support Ukraine, the Vice President of the European Commission, Valdis Dombrovskis, said to the Financial Times.
According to him, the countries of the "Big Seven" agreed to freeze assets until Moscow compensates Ukraine for damages, and it is time to think about how best to use the income received during this time.
Stages of implementation of the European Commission's plan
To win over sceptics, the EC will first require securities depositories holding Russian central bank assets to place their profits in separate accounts, sources briefed on the proposal said.
The plan's second stage will transfer profits to the general EU budget to help support Ukraine.
EU member states will need to support the plan unanimously and further steps to implement it before the money can be paid to Ukraine.
As part of this proposal, only income from the assets of the Central Bank of Russia will be sent. The commission estimates this would bring in up to €3 billion a year, or €15 billion, between 2023 and 2027, although officials warned that the amount would depend on interest rates.
Use of frozen assets of the Russian Federation
For several months, European officials have been studying ways to extract revenues from Russian assets of about $300 billion, blocked after the beginning of the Russian Federation's large-scale invasion of Ukraine.
Ukraine and international partners are working to create an opportunity to confiscate frozen Russian assets, including state assets, in allied countries. These funds should be directed to the restoration of Ukraine. We are talking about almost 500 million dollars.
We also reported that the European Union supported the use of revenues from the frozen assets of the Russian Federation for the benefit of Ukraine. The European Commission plans to put forward legal proposals already in December.
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