European Commission approves plan to use frozen russian assets for Ukraine

The European Commission has approved a plan to use frozen russian assets in favor of Ukraine.

The European Commission will not publish the proposals, but will pass them on to the European Council for study and decision.

The EU proposal stems from a situation in which, after the Central Bank of russia's assets in European countries were immobilized, central depositories were forced to put some of these assets, which were making a profit, into banks.

This subsequently generated a large amount of income, which is still growing. This exceptional income is only due to the decision to immobilize. Eventually, the CSDs recorded these revenues as profits on their books, and member states started raising corporate taxes on these profits.

As a result, the European Commission decided that these revenues should be used to help rebuild Ukraine. But this is a long-term goal, and now the European Commission is focused on separating the revenues from the natural resources and "securing" them.

The short-term goal is to make sure that this is possible by doing two things: first, by making the CSDs manage and record all of these revenues separately so that they can be clearly identified in their accounting systems, and second, that these net profits are now prohibited from being distributed to shareholders or other third parties - they must remain in the CSD.

Source: Interfax-Ukraine