The Council of the European Union has approved a resolution that opens the way to a decision on the use of profits from Russia’s frozen assets for Ukraine.
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This was reported today, February 12, on the website of the EU Council.
Relevant assets held in financial institutions of EU member states were frozen after the start of the full-scale Russian invasion of Ukraine as a result of the EU decision to prohibit any operations related to the management of reserves and assets of the Russian Central Bank.
In total, about 260 billion euros of assets of the Central Bank of Russia were immobilized in the form of securities and cash in the jurisdictions of the G7 countries, the EU and Australia. Moreover, more than two thirds of them are immobilized in the EU.
Today, the EU Council adopted a decision and regulation clarifying the obligations of central securities depositories holding assets and reserves of the Central Bank of Russia immobilized as a result of EU restrictive measures, the statement said.
It is noted that this solution:
- clarifies the prohibition on these transactions, as well as the legal status of income received by central depositories in connection with the ownership of Russian immobilized assets, and establishes clear rules for the entities owning them;
- paves the way for a Council decision on the possible creation of a financial contribution to the EU budget from these net revenues to support Ukraine and its recovery and reconstruction at a later stage. This financial contribution could be channeled through the EU budget to the Fund for Ukraine, which the Council and the European Parliament reached a provisional agreement on 6 February 2024.
The Council, in particular, decided that central depositories holding assets of the Central Bank of the Russian Federation worth more than 1 million euros should separately take into account emergency cash balances that accumulate as a result of EU restrictive measures, and also separately retain the corresponding income, the Council of the EU notes. — In addition, central depositories are prohibited from disposing of the net profit received.
The Minister of Legal Affairs of Ukraine Dmitry Kuleba has already responded to the decision of the EU Council.
“I welcome the decision of the EU Council, which opens the way to the use of emergency proceeds from frozen Russian assets,” he said. — We encourage further steps for their practical use in favor of Ukraine. These steps must be ambitious and rapid.
Ukraine is ready to continue working with partners to achieve the ultimate goal: making Russian assets available to Ukraine. The aggressor must pay,” he added.
Source: Racurs
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