BRUSSELS, December 12. /TASS/. The European Union has outlined steps for using proceeds from the reinvestment of frozen sovereign assets of Russia, which it then intends to send to Kiev, Bloomberg reported referring to a draft relevant document of the European Commission.
The proposal would determine what funds would be used in the program. Then (Step one) it is planned to establish a course of action with these assets.
"After deduction of expenses and national taxes, the ensuing profits would be clearly identified and accounted for in line with statutory capital and risk management requirements. This will make possible their transfer and assignment to the EU budget for the benefit of Ukraine at a later stage," the document says.
According to the news agency, the proposals include "recommendations to shield the entities holding the assets from legal risks and retaliation, as well as exemptions for central securities depositories holding small amounts."
The second step envisions "transferring the net revenue generated by the frozen funds to the EU’s 2024-2027 budget, would require those concerns to be overcome before the commission presents a further proposal.
According to the document, the EC intends to collect about 15 billion euros by 2027 in the form of proceeds from the reinvestment of Russian frozen assets, The largest volume of such assets - 191 billion euros - is blocked on the international platform Euroclear in Belgium, which has already received a profit from them in the amount of 3 billion euros over the 9 months of this year.
Despite the G7's support for such a "windfall measure," the EU is moving forward with plans gradually, without undue haste, given concerns expressed by the European Central Bank, the International Monetary Fund and several member states regarding the legal and financial viability of these steps. However, the EC document makes clear that "the returns generated by the frozen assets are not due to Russia, nor are they Russia’s property, because they are distinct from the principal immobilized assets themselves," Bloomberg notes.
As previously reported, such steps by the EC have been postponed since the summer of this year, but problems with collecting aid to Ukraine in the EU and the US have given new impetus to attempts to use proceeds from Russian frozen assets. To put the plan into effect, it must be unanimously approved by all 27 EU countries at a summit on December 14-15.