EU’s sources indicate timeline for Ukraine to receive funds from frozen Russian assets

March 12,2024 304
EU’s sources indicate timeline for Ukraine to receive funds from frozen Russian assets

Ukraine may receive the first tranche of revenues from frozen Russian assets abroad as early as July. Currently, the European Commission is actively working on a solution to facilitate the transfer process, according to sources cited by the Financial Times.

Brussels is pushing to give Ukraine €2bn-€3bn this year from profits derived from Russia’s frozen assets, accelerating the funding plan as US financial support to Kyiv wanes. The European Commission is preparing a plan, according to officials, that would involve seizing sanctions-related profits, dating from February onwards, earned at the central securities depository Euroclear,” journalists report.

In total, approximately €190 billion have been frozen in the Belgian depository Euroclear since the start of Russia’s full-scale invasion of Ukraine. So far, the assets have yielded a profit of €3.85 billion, and by 2027, the total profit could reach €20 billion, according to the publication’s sources.

The EU may appropriate 97% of the net profit from these assets and transfer them to the bloc’s budget. The proposal suggests disbursing these funds quarterly or semi-annually and using them for Ukraine.

The plan is anticipated to be ready for discussion at the EU leaders’ summit in mid-March. The European Commission is expected to endorse the proposal and secure backing from member states of the EU.

Earlier, the United States has urgently called for the transfer of profits from frozen Russian assets to Ukraine. Janet Yellen, US Secretary of the Treasury, made the statement. However, France has opposed such a call, arguing that international law has insufficient legal grounds to transfer profits from frozen Russian assets abroad to Ukraine and that further work is needed.

Cover: AP Photo/Patrick Semansky