EU countries backed Russian Federation’s plan to use frozen assets in favor of Ukraine, – Bloomberg

The leaders of the European Union member states, at the summit that started in Brussels on June 29, supported a plan that allows the Russian Central Bank’s frozen assets to be used in favor of Ukraine and to collect income tax from them. , reports Bloomberg.

The use of Russian money, the frozen assets of the Central Bank of the Russian Federation, is a legal problem that the EU has been trying to solve for a long time.

The frozen assets of the Russian Central Bank in Europe are expected to bring in excess profits of about 3 billion euros per year. More than half of these assets are in cash and deposits, the remainder in securities that will be converted into cash when they mature over the next two to three years.

German Chancellor Olaf Scholz suggested that it would take time for the EU to determine and agree on a way to seize frozen Russian assets and use them to finance Ukraine’s rebuilding. “It’s all very complicated and until now no one knows what is possible and how,” Scholz said.

Ursula von der Leyen explained what the prospect of using Russian assets in favor of Ukraine looks like. According to him, this problem has two dimensions, political and financial. Politically, no one doubts that Russia, as the perpetrator of the crime, must pay “the price for the colossal destruction of Ukrainian infrastructure”. Regarding the financial aspect, von der Leyen assured that the European Commission will “have a very balanced approach in cooperation with our partners” and will take into account the European Central Bank’s view on this issue.

The European Commission is preparing to submit a more detailed proposal before the end of the summer.

According to Bloomberg interlocutors, there is a legal risk that the plan could be challenged in court. There are fears that interest and income from the frozen sovereign assets of the Russian Federation also belong to Russia.

29 June Focus He wrote that Austria opposes EU-level security guarantees to Ukraine. Austrian Chancellor Karl Nehammer made it clear at the EU summit on 29 June that his country would not accept any obligation to accept EU-level security guarantees for Ukraine.

It was also reported on 29 June that the EU must change for the integration of Ukraine. The President of the European Council, Charles Michel, spoke about the prospects of Ukraine’s accession to the EU. He said it’s not just about the requirements that the Ukrainian government has to fulfill: Europeans also need to change something in their policies.