The EU benefits from Russia’s frozen assets. The Prime Minister of Belgium announced the amount

The European Union will earn €3 billion a year from frozen Russian reserves to help Ukraine, Belgian Prime Minister Alexander De Croo said.

– It is important to us that these funds play a role in the reconstruction of Ukraine. We are focused on excess profits. We are talking about the amount of 3 billion per year that could be received – said De Croo after the end of the first day of the EU summit in Brussels.

He recalled that his country plays a special role in the issue of frozen assets of Russia, namely 90 percent. of its assets are concentrated in Belgium. At the same time, De Croo stressed that EU countries must apply a legal mechanism that does not undermine Europe’s financial stability.

Confiscation of Russia’s money? Sanctions are not enough

Last week, the Western press reported that an EU working group had not found a “credible legal mechanism to seize Russia’s frozen assets solely on the basis that they are sanctioned”.

Instead, the European Commission is working on a plan whereby financial institutions, including custodians, where Russian assets are located, will have to transfer part of the profits they receive to EU authorities and send the money to Ukraine.

The Germans are afraid of precedents. In the background reparations for Poland

German officials quoted by the Financial Times believe that using Russian funds to rebuild Ukraine raises “difficult financial and legal issues”.

According to one of the “FT” interlocutors, this opens a “Pandora’s box” because other countries, such as Poland, which is claiming compensation from Germany for damage suffered during World War II, could then benefit from a precedent.

Bloomberg estimates the total value of frozen Russian assets in the EU at around €219 billion. A significant part of this is held in Euroclear’s European repository. Despite being frozen, the assets still generate profits, which amounted to around 750 million euros in the first quarter of 2023.

Reconstruction of Ukraine after the war. How much will it be?

According to the World Bank, Ukraine needs at least $411 billion for post-war reconstruction. This figure is equivalent to 2.6 times Ukraine’s GDP in 2022.

According to data from the National Bank of Ukraine, the country received $32.1 billion from the West last year, including $12 billion from the US and $8 billion from the EU. Another $2.7 billion was donated by the International Monetary Fund, $1.9 billion from Canada and $1.5 billion from Germany.

Source: Do Rzeczy

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