EU Council authorizes use of proceeds from frozen russian assets to support Ukraine
Kyiv • UNN
The EU Council adopts a decision allowing the EU to use the proceeds from the frozen assets of the russian central bank to support Ukraine's recovery from the war.
Today, on February 12, the Council of the European Union adopted a decision that will allow the EU to use the profits from frozen russian assets for Ukraine. This was reported by the press service of the EU Council, UNN reports.
Details
The Council of the EU adopted a Decision and Regulation clarifying the obligations of Central Securities Depositories (CSDs) holding assets and reserves of the Central Bank of Russia (CBR) that are immobilized as a result of EU restrictive measures.
It is noted that of the EU Council Decision also clarifies the legal status of income received by CSDs in connection with the ownership of Russian immovable assets and establishes clear rules for entities that hold them.
In particular, CSDs that hold CBR assets worth more than EUR 1 million must account separately for extraordinary cash balances accumulated due to EU restrictive measures and must keep the related income separately. In addition, CBRs are prohibited from disposing of the net profit generated.
Also from in view of the risks and costs associated with holding the assets and reserves of the Central Bank of russia, each CSD may request its supervisory authority to authorize the release of a portion of this net income in order to comply with the capital and risk management requirements established by law.
This decision paves the way for the EU Council to adopt a regulation on the possible establishment of a financial contribution to the EU budget collected from these net revenues to support Ukraine and its recovery and reconstruction at a later stage. This financial contribution could be channelled through the EU budget to the Fund for Ukraine, on which the EU Council and the European Parliament reached a preliminary agreement on February 6, 2024
Earlier UNN reportedthat EU ambassadors reached an agreement to use the profits from frozen Russian assets to help Ukraine.
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