EU agrees use of profits on Russian assets for Ukraine
Ukraine war - Photo © European Union 2022 - source EP
(BRUSSELS) - As Russia continues its war of aggression against Ukraine, the EU adopted Tuesday a set of legal acts to use net profits from Russian sanctions for military support to Ukraine, as well as for reconstruction.
The unexpected and extraordinary revenues accruing to central securities depositories (CSDs) holding Russian sovereign assets and reserves of more than EUR 1 million will make a financial contribution from their corresponding net profits, accumulating since 15 February 2024.
The amounts will be paid by the CSDs to the EU on a bi-annual basis, and will be used for further military support to Ukraine through the European Peace Facility, as well as with support to Ukraine's defence industry capacities and reconstruction needs with EU programmes, according to the following key:
- European Peace Facility 90%
- EU programmes financed from the EU budget 10%
The allocation will be reviewed yearly, and for the first time before 1 January 2025.
CSDs will be allowed to provisionally retain a share of around 10% of the financial contribution to comply with statutory capital and risk management requirements in view of the impact due to the war in Ukraine, with regard to the assets held by CSDs.
EU Sanctions against Russia explained (background information)