EU to allocate Russia’s frozen profits to Ukraine

The European Union is preparing to earmark the profits generated from frozen Russian assets to aid Ukraine’s reconstruction. EU nations have agreed upon a proposal to set aside the earnings, which stemmed from sanctions imposed in 2022, for Ukraine. This proposal, while reached on Monday, still requires formal adoption. Over €200 billion in Russian assets, predominantly from Russia’s central bank, have been frozen following Russia’s invasion of Ukraine, amassing billions in profit, especially due to rising interest rates. Euroclear, based in Belgium, managed these assets, earning over €3 billion in the first nine months of 2023. The EU must still address legal complexities to allow for the transfer of profits while avoiding direct expropriation and adverse actions from Russia, as well as maintaining international trust in the EU’s financial practices.