Skip to content
Edit post

Bloomberg: EU, European Central Bank argue over plan to tax sanctioned Russian assets

by Dinara Khalilova and The Kyiv Independent news desk July 14, 2023 10:17 PM 2 min read
European Union flags decorates the façade of the iconic Berlaymont building, the seat of the European Commission in Brussels, Belgium, on May 31, 2023. (Artur Widak/NurPhoto via Getty Images)
This audio is created with AI assistance

Support independent journalism in Ukraine. Join us in this fight.

Become a member Support us just once

The European Union and the European Central Bank (ECB) are in dispute over plans to use profits from frozen Russian assets to aid Ukraine's reconstruction, Bloomberg reported on July 14.

Officials from the EU's executive branch have opposed ECB President Christine Lagarde's warnings that measures against sanctioned holdings could endanger the eurozone's financial stability and the liquidity of the common currency, people familiar with the matter told Bloomberg.

The European Commission reportedly rejected the ECB's arguments, saying that any risk appeared — and was assessed — when the assets were initially frozen in February 2022 following Russia's full-scale invasion of Ukraine and that so far, none of those fears have materialized.

According to one of the Bloomberg sources, the windfall option does not affect the assets themselves or any requirements from the Russian Central Bank, nor does it influence the EU's role in holding securities.

The EU has been exploring options for using over $200 billion of frozen Russian Central Bank assets to aid Ukraine. Although Brussels assessed that it could not legally confiscate the funds, the EU officials have been discussing how to at least use the profits generated from these assets and send them to Ukraine.

The European Commission initially said it would come up with a proposal this summer, but the purported dispute has pushed the timeline until the commission's summer break ends, Bloomberg wrote.

According to the media outlet, windfall profits from frozen Russian assets could generate up to 3 billion euros ($3.3 billion) in cash and securities.

Tetiana Khutor: Are legal constraints an excuse for dragging feet on mobilizing Russian assets?
No nation can single-handedly cover all of Ukraine’s reconstruction needs, and nor should it be expected to, considering the existence of frozen Russian assets worth billions worldwide. These funds will serve as the primary source for Ukraine’s recovery. To better grasp the situation, it is worth e…
Support independent journalism in Ukraine. Join us in this fight.
Freedom can be costly. Both Ukraine and its journalists are paying a high price for their independence. Support independent journalism in its darkest hour. Support us for as little as $1, and it only takes a minute.
visa masterCard americanExpress

News Feed

Ukraine Daily
News from Ukraine in your inbox
Ukraine news
Please, enter correct email address
6:29 PM

Tucker Carlson's team denies launching show on Russian TV.

The Russian state television network Rossiya 24 posted episodes of a purported new show with U.S. far-right political commentator and conspiracy theorist Tucker Carlson on May 21, but Carlson's team said he had nothing to do with it.
3:45 PM

Moldova, EU sign pact on security, defense.

"It (partnership) will allow to jointly address common security challenges, make our engagement more effective and explore new areas of cooperation," European Union's top diplomat Josep Borrell said.
MORE NEWS

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.