Within the next fortnight, an official proposal is expected from the European Commission, outlining the utilization of frozen Russian assets to support Ukraine. According to reports from Euractiv, the funds are likely to be allocated for the procurement of military equipment.
European Commission President Ursula von der Leyen surprised observers by stating last week that it’s time to initiate discussions on utilizing the unexpected gains from frozen Russian assets to collectively acquire military resources for Ukraine. The initial assumption that the funds would be directed towards the reconstruction of Ukraine is now being reconsidered.
A European Union diplomat remarked, “While we initially anticipated the windfall profits to be used for the reconstruction of Ukraine, the current proposal aligns with the need to ensure there is a stable country to rebuild in the first place, making this course of action highly logical.”
Russian assets confiscation
Since the commencement of Russia’s war against Ukraine, Western nations have frozen Russian assets totaling approximately 280 billion euros. The predominant portion of these assets, primarily securities held by the Russian central bank, is currently immobilized in the Euroclear depository situated in Brussels. Belgium, specifically, has frozen 250 billion euros of Russian assets facilitated through the international depository Euroclear.
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Belgian Prime Minister Alexander De Kroo has reported that the tax on these frozen assets amounted to about EUR 1.3 billion in 2023, and it is projected to increase to around EUR 1.7 billion in 2024.
According to the World Bank’s estimations, Ukraine has incurred economic losses amounting to $499 billion due to the Russian invasion.
