The European Union prepared legislation that would create a mechanism for Ukraine to get profits from frozen Russian sovereign assets in July, Bloomberg reported.

This week EU leaders are to discuss the proposal in Brussels, which would first require their backing. If approved, the plan would send an estimated €3 billion ($3.3 billion) per year, generated from taxes on profits from frozen Russian assets, to help finance Ukraine’s defense against Russia’s ongoing full-scale invasion.

According to the EU proposal, income received from the frozen assets after Feb. 15, 2024, would be transferred to the European Peace Facility – the EU’s mechanism for reimbursing countries that delivered aid to Ukraine, including weapons – every six months.

Part of the profits generated from Russia’s frozen assets would go to cover asset management costs and deal with risks, including possible Russian countermeasures.

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About €260 billion ($282 billion) of the Russian central bank’s assets, mainly in the form of securities and cash, were frozen by G-7 countries, the EU, and Australia – with more than two-thirds in the EU.

In the US, President Joe Biden’s administration has been pushing G-7 allies to seize the Russian frozen assets outright, but had resistance from some countries, including Germany, France, and the European Central Bank, Bloomberg reported.

At home, the Biden administration has also been having difficulty getting aid to Ukraine.

Ukraine Reportedly Destroys Buk-M1 Russian Anti-Aircraft Missile Complex Worth Millions
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Ukraine Reportedly Destroys Buk-M1 Russian Anti-Aircraft Missile Complex Worth Millions

Special operations forces pointed out that the Russian Buk-M1 did not have time to fire a single missile - it was destroyed by the missile and artillery unit of the Defense Forces of Ukraine.

Ukraine has been facing an artillery shortage and losing ground to invading Russian forces, as some $60 billion in planned US aid has been held up in Congress.  

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Comments ( 1)

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John
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Sending Ukraine the interest on seized russian assets is not enough. Its also not fair to all allied taxpayers that we pay to address putins crimes and he gets off almost Scott free.

Take the full amount of russia's seized assets. Make a new "war time measures' law to facilitate that if legally needed.

Optionally, at least let Ukraine use the frozen russian assets as collateral against which they can take out loans.

Should these loans not get repaid.....oh well. Thats what collateral is for. The loan creditors will not get shafted.

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