EU mulls transferring proceeds from frozen Russian assets to Ukraine

The EU is discussing the transfer to Ukraine of proceeds from frozen Russian assets stuck in the system of global financial markets. In particular, we are talking about the funds of the Russian central bank.

This was reported by RBC-Ukraine, citing the Financial Times.

It is noted that such a move will not lead to the expropriation of the assets themselves, but it will still mean an escalation of Western financial pressure on Russia to help Ukraine defend itself against Russian aggression.

According to the Belgian government, sanctions have frozen Russian assets worth about 196.6 billion euros, 180 of which are assets of the Russian central bank. These funds are reinvested by the Belgian settlement center Euroclear, and the very profits derived from this can be redirected to Ukraine by EU officials.

In the first quarter of this year, Euroclear reported 734 million euros of interest on cash balances from assets under Russian sanctions.

The publication notes that such a move would likely require broader international support, as it could affect financial markets. The goal of EU representatives is to present more specific proposals on Russian assets at a meeting of EU leaders in late June.

Author – Anastasiya Glotova, 25/05/2023