FT: Ukraine may receive the first part of revenues from frozen Russian assets in July

Brussels is insisting that Ukraine receive €2-3 billion in revenues from frozen Russian assets this year amid reduced financial support for Kyiv.

The Financial Times writes about it.

The European Commission is preparing a plan to seize profits related to sanctions against Russia received by the central securities depository Euroclear. A significant part of the €200 billion frozen in the EU is stored there.

If the EU member states approve the plan, Ukraine can receive the first cash tranche as early as July. The European Commission will work out a proposal for the summit of EU leaders, which should take place next week.

The President of the Commission, Ursula von der Leyen, called for the money to be used for military support to Ukraine, and not for post-war reconstruction, as originally planned. This has become a controversial issue for some capitals.

So far, the frozen €190 billion of Russian assets at Euroclear has brought €3.85 billion in profit. Depending on interest rates, Ukraine will receive from two to three billion euros this year. By 2027, the total profit withdrawn from Euroclear could reach €20 billion.

The Financial Times got acquainted with the draft of the internal proposal of the European Commission. It says that Brussels can appropriate 97% of the net profit from frozen Russian assets held by Euroclear and transfer them to the EU budget. And then this money can be transferred to Ukraine every quarter or twice a year. This proposal needs the final approval of the commission and the support of the member states.

It is understood that any such EU plans will not be applied retroactively, so the €4 billion of profits that have already accrued will be kept at Euroclear mostly to cover the costs of the Russian litigation.

• Since the beginning of the war in Ukraine, the EU has frozen the assets of the Russian Central Bank for more than €200 billion. Currently, the United States and the European Union are looking for legal opportunities to use all $300 billion of frozen Russian assets for the benefit of Ukraine.
• US President Joe Biden wants the G7 countries to make progress on implementing plans to use frozen Russian assets for the benefit of Ukraine before the leadersʼ meeting in June 2024. Biden privately told his allies that if Ukraine loses, the international order will be turned upside down for at least the next five decades.