Espreso. Global

EU to transfer €3 billion of profits from frozen Russian assets to Ukraine

28 October, 2023 Saturday
13:20

At a summit on Friday, EU leaders made a fundamental decision to transfer billions of euros to Ukraine that were received from the investment of Russian assets frozen in the EU. The European Commission is expected to formalize this decision in early December

client/title.list_title

This is stated in the resolution of the European Council.

Of the approximately $300 billion in Russian foreign exchange reserves frozen by Western countries since the start of the full-scale war in Ukraine, most of it - over 200 billion euros - is in the EU, Politico reports.

Almost all of them (180 billion euros) are kept in Euroclear, the world's largest securities depository with headquarters in Brussels.

Euroclear said on Thursday that in the first 9 months of this year it earned about 3 billion euros on frozen Russian assets. For comparison, a year earlier in the same period, the depository earned €347 million. This income has also remained with Euroclear, as it cannot be paid to clients under sanctions.

It is these 3 billion euros that are planned to be transferred to support Ukraine.

The idea of using frozen Russian assets to support Ukraine appeared last year. However, the European authorities did not dare to do so, fearing negative consequences for the euro (expropriation of assets could weaken the euro's position as a reserve currency).

As a result, the idea emerged to transfer to Ukraine not the frozen assets themselves, but the income earned from investing the assets (these incomes are also frozen).

"Politically we agreed that ultimately Russia must pay for the long-term reconstruction of Ukraine," European Commission President Ursula von der Leyen said on Friday after the EU leaders' summit.

  • On June 30, EU leaders supported the idea of introducing a tax on unforeseen profits from the assets of the Russian Central Bank to help rebuild Ukraine.


 
Tags:
Read also:
  • News
2024, Tuesday
23 July
21:10
Review
Victorious news of 881st day of war: Ukrainian forces destroy UAV control station in south, down Russian Su-25 in Donetsk region
20:43
How many combat aircraft will Russia make in 2024 and will it compensate for losses
20:14
Exclusive
Defense Express explains why Crimea ferry was chosen as target for attack
19:50
Updated
Russian troops attack foster family home in Dnipropetrovsk region, injuring three children
19:21
Number of Russian troops in Zaporizhzhia region increases to 90,000 in three weeks
18:54
First visit of foreign minister to China since 2012: Kuleba tells what he will talk about in Beijing
18:25
Hungary, Slovakia initiate European Commission committee meeting due to Ukraine's ban on Lukoil's oil transit
17:57
Ukraine secures $3.9 billion grant from US: breakdown
17:30
European leaders look like fools because they followed Biden into war with Russia: Manipulation of world media for July 23
16:57
OPINION
Republicans will resist Biden's withdrawal
16:30
Russia attacks Kherson with drone, wounding civilian man
16:11
Exclusive
World must understand that war with Russia is matter of international law - publicist Riabchuk
15:49
Exclusive
Ukrainians build and donate FPV drones to military from home
15:27
Updated
Ukrainian Defense Forces down second Russian Su-25 in Donetsk region this month
15:10
Indonesia resumes oil purchases from Russia after 10-year break
14:52
Boeing, Antonov aircraft manufacturers to cooperate in defense projects
14:35
Ukrainian Parliament votes for extension of martial law
14:15
Exclusive
“Soldiers shot back at FPV with guns, driver was speeding”: Ukrainian medic on Chasiv Yar evacuation
13:53
Russian troops attack Dnipropetrovsk region, injuring three children
13:18
OPINION
Why is Ukraine's FM Kuleba going to China?
12:55
Turkey to help Ukraine restore energy system
12:30
Exclusive
Ukraine must resist concessions despite "war fatigue" and anticipate prolonged war - military expert
12:10
Free world must wake up, think about how to protect its citizens - Zaluzhnyi
11:53
Updated
Russia claims attack on port Kavkaz, Krasnodar Krai
11:43
Exclusive
Russia’s foreign mercenaries face mass capture: Ukraine's Rubizh Brigade explains why
11:25
Ukrainians invent way to fight, win against stronger armies in 21st century - Zaluzhnyi
10:59
Latvia hands over 500 more drones to Ukraine as part of drone coalition
10:36
Review
Ukraine's drone attacks on Russia, situation in Pokrovsk sector. Serhiy Zgurets’ column
10:15
155 combat clashes at frontline, Russia focuses on Pokrovsk, Kramatorsk direction - Ukraine's General Staff
09:35
Infographics
Russia loses air defense system, 4 tanks and 1,220 soldiers in one day of war in Ukraine
2024, Monday
22 July
21:30
Review
Victorious news of 880th day of war: Ukraine to receive 100,000 ammunition rounds via Czech initiative in August, Ukrainian forces could block Crimea this year
21:11
Exclusive
Russian forces block evacuations from Kharkiv region, shoot civilians - volunteer
20:55
Ukraine’s intelligence chief accuses Russia of complicity in Farion's murder
20:35
Ukraine turns to FPV drones due to surface-to-air missile shortage
20:12
Ukraine's finance minister calls for increase in military levy
19:53
Russia damages 1,642 medical facilities in Ukraine, completely destroying 214 of them 
19:30
Russian troops attempt to breach Ukrainian defenses in Zaporizhzhia region - Ukraine's General Staff
19:05
Hungary threatens legal action after Ukraine stops transit of Russian oil
18:39
Exclusive
How US B-52 bombers in Romania could help Ukraine, Defense Express explains
18:14
Kherson Museum finds five more paintings stolen by Russian army
More news