FT: EU to allocate €3 bln from frozen Russian assets to Ukraine by summer
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The European Union intends to transfer around €3 billion in profits obtained from the frozen Russian assets to Ukraine.
These funds could arrive no later than the summer of 2024, the Financial Times reported, citing several European officials who were familiar with the discussion.
According to the publication, the European Union wants to expedite the process of transferring funds to Ukraine from frozen Russian assets due to the significant reduction in economic support for the country from the United States.
Journalists' sources noted that the European Commission was preparing a plan to confiscate sanctions-related profits starting February obtained in the central securities depository, Euroclear.
As mentioned in the article, the first tranche of funds could be disbursed as early as July if Brussels can obtain approval from EU member states. According to preliminary data, this proposal will be presented to the foreign ministers of the countries before the EU leaders' summit next week.
The media pointed out that approximately €190 billion of Russian assets have been frozen in Euroclear since the full-scale invasion of Ukraine. The depository has already yielded a profit of €3.85 billion.
The latest plans involve allocating Ukraine between €2 and €3 billion from this amount in 2024, depending on interest rates. According to EU officials' estimates, the total profit obtained from frozen Russian assets in Euroclear could reach €20 billion by 2027.
According to the draft European Commission proposal reviewed by journalists, Brussels may appropriate 97% of the net profit from frozen Russian assets held by Euroclear and transfer it to the EU budget.
As noted in the draft, the money will be paid out quarterly or semi-annually and "can be used for the benefit of Ukraine according to various agreements."
Britain is also ready to transfer frozen assets of the Central Bank of Russia to Ukraine. Moreover, it is the assets themselves, not the proceeds from them, as the EU plans to do, according to the country's Foreign Minister David Cameron.
He noted that this way, Russian assets could be used as a guarantee that Russia itself would pay reparations.
"There is an opportunity to use something like a syndicated loan or a bond that effectively uses the frozen Russian assets as a surety to give that money to the Ukrianians knowing that we will recoup it when reparations are paid by Russia. That may be a better way of doing it. We are aiming for the maximum amount of G7 and EU unity on this but if we cannot get it. I think we will have to move ahead with allies that want to take this action," Cameron said.
About confiscated Russian assets for Ukraine
The Security Service of Ukraine (SBU) arrested nearly ₴190 billion worth of assets of Russian businessmen who financed the war during 2022-2023 and as of early August.
Moreover, Ukraine's partners are rushing to agree on a plan to confiscate $300 billion of frozen Russian assets. The United States has proposed to the "Group of Seven" working groups to study how to do this.
On February 24, the Group of Seven (G7) countries released a statement confirming that they would keep Russian assets frozen in their jurisdictions until the end of Russia's full-scale war against Ukraine.
Also, the United States has, for the first time in history, transferred confiscated Russian assets to Estonia, which will be used to support Ukraine.
The European Council approved a resolution paving the way for using profits from frozen Russian assets for Ukraine.
The President of the European Commission, Ursula von der Leyen, proposed that the European Union consider using the proceeds from frozen Russian assets to benefit Ukraine, including purchasing military equipment.
