This summer, Ukraine will receive the first profits from frozen Russian assets

The European Union has prepared a draft law under which Ukraine will be able to start receiving profits from frozen Russian sovereign assets as early as July of this year. According to Bloomberg, the draft law envisages the introduction of a tax on income received from Russian funds “to provide approximately €3 billion annually to finance arms supplies to Ukraine and stimulate its defense industry.”

It is noted that the share of income received from February 15 will be transferred by the EU twice a year until sanctions against Russia are lifted. Initially, the funds will be allocated to the European Peace Fund, which pays for arms supplies to Kyiv, and the Ukraine Support Fund.

Part of the profit will remain in central securities depositories to cover asset management expenses and “deal with any risks, including possible actions by Russia.”

Bloomberg reminds that the administration of US President Joe Biden is pushing G7 allies to immediately freeze frozen assets and hopes to see progress by the June summit of leaders.

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