EU may transfer first proceeds from frozen Russian assets to Ukraine in July – Financial Times

The European Commission is seeking to speed up the approval of a mechanism that will allow the use of profits from Russia's frozen sovereign assets so that Ukraine can receive the first tranche of €2-3 billion in July.

Source: European Pravda citing Financial Times 

Details: The FT claims that the European Commission has been preparing a plan to confiscate profits from Russian assets frozen in the Euroclear depository (their value is estimated at 190 billion euros) since February.

The draft internal proposal of the European Commission, which was reviewed by the Financial Times, shows that the EU may appropriate 97% of the net profit received from Russian assets frozen in Euroclear and transfer it to the EU budget.

Further, following  the draft, this money would be paid quarterly or twice a year and "could be used for the benefit of Ukraine according to different arrangements."

This mechanism will not apply to the almost €4 billion that Euroclear has already accrued from the use of frozen Russian assets. The media outlet reports that they are planned to be used primarily to cover legal costs associated with Russia's claims against the EU.

The proposal, which should be ready for next week's EU summit, still needs final approval from the European Commission and support from EU member states, the FT reiterates.

If approved, the first tranche of the proceeds from the frozen Russian assets could be released as soon as July. The FT sources noted that depending on interest rates, it could be between 2 and 3 billion euros.

Read more: Challenges of Confiscation: What Will Help Ukraine Achieve Transfer of Russian Assets

Background: US President Joe Biden wants the G7 countries to move forward with plans to use seized Russian sovereign assets to support Ukraine before their June 2024 summit.

Support UP or become our patron!