EU found way to use proceeds from frozen assets of Russian Federation to help Ukraine, - Bloomberg
According to Bloomberg, European Union officials have prepared a plan to use the proceeds from more than 200 billion euros of frozen assets of the Russian Central Bank, with the aim of directing them to rebuild Ukraine. The European Commission will propose a way to legally transfer the income received from Russian assets to the EU budget.
This is reported by Censor.NET with reference to UNIAN.
The European Commission will meet with officials from Spain, Belgium, Italy, France, and Germany on Thursday and then with all member states next week, according to a source familiar with the plans. EC President Ursula von der Leyen had previously said she would table a legislative proposal before the summer break, but that deadline has since been pushed back.
According to the document, the working group of the commission supports the implementation of the three main proposals of the document in stages, and not all at once.
These steps include clarifying the scope of obligations under financial obligations, introducing requirements to central securities depositories regarding the division of cash balances of Russian assets, and transferring revenues to the EU budget as externally assigned revenues, the document says.
Russian central bank assets frozen in the EU are expected to generate around €3 billion in windfall profits. More than half of the assets are in cash and deposits, and a "significant amount" of the rest is in securities that will turn into cash as they mature in the next two to three years.
It was previously reported that the EU could not agree with the European Central Bank on plans to use profits from frozen assets of the Russian Central Bank to help rebuild Ukraine. At the time, the ECB warned that actions against sanctioned assets could threaten the financial stability of the eurozone and the liquidity of the single currency.
