European Union (EU) leaders plan to take steps towards confiscating 27 billion euros in profit from frozen Russian state assets in Europe to aid Ukraine.
Officials in the European Commission are ready to present what they believe is a legally robust proposal for member states to consider, likely ahead of a prime ministerial meeting in Brussels next Thursday.
Around 300 billion dollars belonging to the Russian central bank is frozen in the West, mostly in foreign currency, gold, and government bonds. About 70 percent of them are held in the Belgian central securities depository Euroclear, holding the equivalent of 190 billion euros.
Deposits held in Europe are likely to generate between 15 and 20 billion euros in after-tax profits from now until the end of 2027, depending on the evolution of global interest rates, said a senior EU official.
This year, profits of between 2 and 3 billion euros are expected, depending on potential changes in interest rates, money that could then go directly to Ukraine.
Although officials are hopeful for an agreement on profit confiscation, they do not yet expect agreement on how the money should be used, as some countries are against its use for financing the Ukrainian military, preferring the money to be spent on reconstruction and humanitarian efforts.
For example, Ireland is bound by neutrality through its constitution but provides funds to Ukraine on the condition that the money is spent on “non-lethal” purposes such as mine clearance.
Sources say the European Commission will not offer options regarding the use of the money at this point.
“That means they can in principle agree to use profits, but then have further discussion about where that money can go constitutionally for each member state,” one source said.
Last month EU leaders agreed that the proceeds could be held in a separate account, clearing the war for “step B”, which would be a decision that this money could be confiscated and sent to Ukraine.
Any agreement will put pressure on the United Kingdom (UK) government to follow suit. The Russian central bank holds 26 billion pounds in the UK, and Foreign Secretary David Cameron joined Ukrainian President Volodymyr Zelenskyy in calling for the money to be seized and handed over to Kyiv, Klix.ba reports.
E.Dz.
