EU Allows Profits From Seized Russian Assets to Be Used for Ukraine
The European Council on May 21 adopted legal measures to allow profits earned on seized Russian assets to be used to support Ukraine, the council announced May 21. The decision applies specifically to net profits from "unexpected and extraordinary revenues accruing to central securities depositories" as a result of EU sanctions on Russia.
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The move will allow depositories holding assets and reserves of over $1 million to make financial contributions to Ukrainian defense capabilities from their net profits, "accumulating since" Feb. 15.
The depositories will pay the EU biannually with the money funneled to Ukraine through the European Peace Facility and EU programs financed by the EU budget. The allocation will be reviewed yearly and "for the first time before" Jan. 1, the council said. The depositories can keep up to around 10% of the financial contribution to comply with "statutory capital and risk management requirements."