https://sputnikglobe.com/20231028/eu-eyes-revenue-from-seized-russian-assets-for-ukraine-aid-1114532400.html

EU Eyes Revenue From Seized Russian Assets for Ukraine Aid

EU Eyes Revenue From Seized Russian Assets for Ukraine Aid

Sputnik International

Euroclear, a financial service situated in Brussels, has reported a notable €3 billion uptick in accruals so far in 2023.

2023-10-28T10:44+0000

2023-10-28T10:44+0000

2023-10-28T10:44+0000

europe

janet yellen

ukraine

russia

brussels

european commission

european union (eu)

european central bank

economy

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European Union authorities have backed a proposal to funnel billions in accrued revenue from seized Russian assets for Ukraine's aid. The European Commission is set to present formal legislation regarding this by December.Since the outset of the Ukraine conflict over a year ago, $300 billion of Russia’s Central Bank reserves have been frozen due to Western sanctions. The world-renowned securities depository, Euroclear, is in the custody of a hefty €180 billion, as cited by the Belgian government.On Thursday, Euroclear stated it had accumulated a remarkable €3 billion from the seized Russian assets over the year's first three quarters. The figure is almost nine times the €347 million of the same period last year, a spike driven by an uptick in interest rates.Due to sanctions, Euroclear cannot disburse coupon payments and bond redemptions related to the frozen Russian assets to its clients. With rising interest rates, Euroclear regularly reinvesting cash balances has yielded higher earnings.While the EU mulls over channeling Russian Central Bank reserves’ financial proceeds to Ukraine, the European Central Bank has cautioned about the consequences for the euro. The bank fears it might incentivize other central banks to divest from their euro holdings, undermining the currency’s value.At Friday's summit, EU leaders gave their unanimous backing for the initiative, pressing the commission to expedite the pace of work to put forth proposals.According to two key figures deeply engaged in the groundwork, the commission is slated to unveil its proposal in early December, media reported, citing sources. Per the officials, communication channels between Brussels, London, and Washington remain active to ensure a unified approach.While nations like Germany initially expressed legal reservations about owning the funds, their uncertainties were laid to rest after US Treasury Secretary Janet Yellen advocated for siphoning surplus earnings. The G7 aligns with this perspective.In December, the EU plans to detail the legal framework surrounding windfall profits at depositories like Euroclear. Only afterward, with legislation slated for the upcoming year, will measures to channel these earnings to Ukraine be introduced.

https://sputnikglobe.com/20230907/not-legally-possible-for-us-to-transfer-seized-russian-assets-to-ukraine---intl-lawyer-1113184463.html

ukraine

russia

brussels

2023

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