EU Regulation on income from Russian assets provides for their withdrawal every two years – publication
Income from frozen Russian assets intended for Ukraine will be transferred to the EU budget every two years, according to the EU Council resolution on their use, which was published on Wednesday in the EU's Official Journal.
The day before, before the meeting of the EU Council, which adopted this regulation, the Foreign Minister of Belgium, which chairs it, Hadja Lahbib, said that in 2024, "about EUR 3 billion should become available by July for Ukraine."
The resolution comes into force on May 23, the publication reports. The Council said it to the existing EU economic sanctions against Russia.
According to the document, from February 15, 2024 and until restrictive measures against Russia remain in place, cash balances representing Russian sovereign assets and reserves accumulating "solely as a result of restrictive measures" must be accounted for separately. Net income derived from these balances from February 15, 2024 must be reported separately.
Some 99.7% of the net profit from income on these assets must be transferred to the EU budget, and it remains at its disposal. "This shall not be disposed of by way of distribution in the form of dividends or in whatever form to the benefit of shareholders or any third party," according to the document.
The amounts will be paid by the EU central depository every two years and are to be used for continued military support for Ukraine through the European Peace Facility, as well as for preserving the capacity of the Ukrainian defense industry and the country's reconstruction needs under EU programs. Some 90% will go through the European Peace Fund, while 10% through EU programs.
The central depository can temporarily retain up to 10% of the profits from frozen assets to cover its "expenses, risks and losses." If these amounts are not used for appropriate purposes within five years, their fate will be determined after consultation with the European Commission and, if necessary, with the European Central Bank, taking into account developments in Ukraine.