EU announces frozen Russian assets decision on social media
EU Ambassadors Agree on Using Frozen Russian Assets for Ukraine
Ambassadors of EU countries have agreed in principle on measures regarding the extraordinary revenues arising from Russia’s frozen assets, as announced by Belgium, the EU Term Presidency, on its official social media account.
The funds obtained from Russian assets are set to support Ukraine’s recovery and military defense, according to the EU Commission President Ursula von der Leyen. She expressed her support for the political agreement on using the revenues from frozen Russian assets for Ukraine, stating that it would enhance the safety and security of both Ukraine and Europe.
Approximately 200 billion euros of the Russian Central Bank’s reserves have been frozen by EU countries due to the ongoing conflict. The financial institutions holding these assets are generating significant profits by reinvesting them as they mature. Euroclear, a Belgian-based securities clearing and custody service provider, holds around 180 billion euros of the frozen Russian Central Bank reserves. Last year, Euroclear earned more than 3 billion euros in revenue from interest on these frozen Russian assets.
The EU Commission proposed that the profits from the conversion of frozen Russian assets be deposited into a separate account and used for Ukraine. This plan involves using the annual profit of approximately 3 billion euros to invest in weapons and ammunition for Ukraine, with 90 percent of the profits designated for this purpose and 10 percent for other forms of aid.
While the full details of the plan have not yet been disclosed, the agreement reached by the EU countries paves the way for a substantial contribution towards Ukraine’s defense and recovery efforts through the conversion of frozen Russian assets.
