EU Council adopts first decision on transfer of Russian assets to Ukraine
On February 12, the EU Council adopted a decision to regulate the future mechanism for using the proceeds of frozen Russian assets in the EU in favor of Ukraine
This was reported by the press service of the EU Council.
The Council adopted a decision and a regulation clarifying the obligations of central securities depositories that hold assets and reserves of the Central Bank of Russia (CBR) frozen by sanctions.
“The Council decided in particular that CSDs holding more than €1 million of CBR’s assets must account extraordinary cash balances accumulating due to EU restrictive measures separately and must also keep corresponding revenues separate. In addition, CSDs shall be prohibited from disposing of the ensuing net profits,” the statement says.
Each central security depository may request its supervisory authority to authorise a release of a share of those net profits in view of complying with statutory capital and risk management requirements.
“This decision paves the way for the Council to decide on a possible establishment of a financial contribution to the EU budget raised on these net profits to support Ukraine and its recovery and reconstruction at a later stage. This financial contribution may be channeled through the EU budget to the Ukraine Facility on which the Council and the European Parliament reached a provisional agreement on 6 February 2024,” the European Council underlines.
Ukrainian Foreign Minister Dmytro Kuleba welcomed the EU's decision and encouraged further steps to use the frozen Russian assets for Ukraine.
“I welcome the European Council's decision paving the way for the use of extraordinary revenues from the frozen Russian assets. We encourage further steps to enable their practical use for Ukraine's benefit. These steps must be ambitious and prompt,” he said in a social media post.
“Ukraine is ready to continue working with partners on reaching our ultimate goal: making Russian assets available to Ukraine. The aggressor must pay,” Kuleba added.