Brussels, March 25, 2024 – The European Commission is set to expedite the transfer of profits to Ukraine derived from frozen Russian assets, according to an unpublished resolution draft reported by the Financial Times.
Under the Commission’s plan, the first tranche of funds could be disbursed as early as July this year. A total of €2-3 billion may be allocated in 2024, with over €20 billion earmarked by 2027.
President of the European Commission, Ursula von der Leyen, has advocated for directing these funds towards military support, a stance that may face resistance from certain EU member states, including Hungary.
Brussels proposes to assign 97% of the net profits from frozen Russian assets in the Euroclear investment fund to the EU budget. Subsequently, these funds will be disbursed according to agreements and can be utilized for the benefit of Ukraine.
However, the plan will not have retroactive effect, and nearly €4 billion of accumulated profits will remain with Euroclear, primarily to cover legal expenses arising from litigation with Russia.
The Commission’s move is poised to generate significant debate both within and outside the European Union. It also forms part of a broader strategy to support Ukraine in its ongoing confrontation with Russia, which has persisted for several years.