The European Union plans to allocate from 2 to 3 billion euros to Ukraine from the profits received by the Euroclear depository from frozen Russian assets already this summer.
When can Ukraine receive the first tranche of the Russian frozen assets?
It is noted that the European Commission is preparing a plan that provides for the confiscation of sanctions-related profits. If Brussels can get the approval of the member states, the first tranche of money can be allocated as early as July.
The proposal is expected to be made before next week's summit of EU leaders.
European Commission President Ursula von der Leyen has called for the funds to go towards military support rather than post-war reconstruction, as initially envisaged, sparking controversy in some capitals.
It is reported that this year Ukraine will receive from 2 to 3 billion euros, depending on interest rates. According to EU officials, the total profit generated by Euroclear could reach €20 billion by 2027.
At the same time, the EU plans will not apply retroactively. Euroclear will retain almost €4 billion in profits it has already accumulated, mainly to cover legal costs from the lawsuits with Russia.
What is known about the confiscation of Russian assets
On Nov. 30, 2023, the US Senate presented a bill to confiscate Russian assets. Already on Jan.11, the Biden administration supported the confiscation of assets of the Russian Federation for transfer to Ukraine.
Meanwhile, the European Commission plans to raise €15 billion from Russia's frozen assets as financial aid to Ukraine.
At the same time, Russia estimated that the West could lose at least $288 billion in assets and investments if it confiscated frozen Russian assets to help rebuild Ukraine and said Moscow would retaliate.
On Jan.23, Belgium's ambassador to the United States, Jean-Arthur Regibeau, said that Western countries should collectively decide to confiscate frozen Russian assets, most stored in the Brussels clearing house Euroclear.
On Jan.24, the US Senate committee approved a draft law on confiscating Russian assets and their transfer to Ukraine.
On Jan. 30, the Committee on Political Affairs of the Parliamentary Assembly of the Council of Europe adopted a draft resolution for confiscating frozen Russian assets and transferring them to a new fund to restore Ukraine.
Europe keeps €191 billion of Russia's €260 billion frozen foreign assets, the profit from which amounted to €4.4 billion in 2023, and it wants to transfer them to Ukraine.
G7 countries and the EU are discussing a plan to use frozen assets of the Russian central bank worth more than $250 billion as collateral to finance the reconstruction of Ukraine.
