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Profits from frozen assets of Russia will be paid biannually — EU Council

It is reported that 90% of the income from the assets will go to the European Peace Fund

BRUSSELS, May 21. /TASS/. Central banks of the European Union countries undertake to transfer profits from frozen Russian assets to community institutions biannually, the Council of the European Union said.

"Windfall net profits generated by immobilized Russian assets will be used to support Ukraine’s armed forces," the Council said in a statement.

According to the statement, 90% of the income from the assets will go to the European Peace Fund, 10% will go to EU programs related to "further military support to Ukraine, as well as its defense industry capacities and reconstruction."

This allocation will be reviewed yearly, and for the first time before 1 January 2025.

The statement clarifies that only the central securities depositories holding Russian sovereign assets and reserves of more than 1 million euros will make a financial contribution from their corresponding net profits, accumulating since 15 February 2024.

For the first time, the central securities depositories 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 conflict in Ukraine, with regard to the assets held by the central securities depositories.

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