The leaders of the European Union supported the plan to use the frozen assets of the Central Bank of Russia for the benefit of Ukraine, which provides for the collection of income tax from them.
This is reported by Bloomberg and Reuters.
European Union leaders are backing a plan that could impose a tax on excess profits from the assets of the Russian central bank worth more than 200 billion euros to help rebuild Ukraine. Now they want support from the G7 countries.
It is expected that the frozen assets of the Russian central bank will bring about 3 billion euros in excess profits. More than half of the assets are in cash and deposits, while a significant amount of the rest is in securities that will be converted to cash as they mature in the next two to three years.
It is noted that the European Union has already discussed such plans with the United States, and the administration of Joe Biden has been informed of the progress. At the same time, discussions with the US and others will continue in the coming days and weeks.
In addition, Britain has supported the EU plan and is negotiating with the bloc about it.
At the same time, Bloomberg reports that there is a certain legal risk that such a plan could be challenged in court. Some of the publication's sources claim that the interest and profits earned on the funds come from sanctioned assets that ultimately belong to Russia.
The Prime Minister of Belgium, Alexander de Croo, noted that the plan can work if a legal basis for it is found.
He noted that the bloc cannot touch the assets themselves without jeopardizing the financial system because they are cross-held between central banks.
"The commission is working on it. We have to see what is the right legal basis for it, but we will coordinate between different countries," he said.
Confiscation of Russian assets
Ukraine, together with its allies, is creating a format that will allow it to confiscate frozen Russian assets in Europe, the United States, Canada, and other partner states. They want to send them to restore Ukraine.
Bloomberg reported that the EU is already studying the procedure for confiscation of 200 billion euros of frozen assets of the Russian central bank, but there they encountered legal obstacles.
At the same time, Germany opposes the transfer of frozen Russian assets to Ukraine due to legal and financial risks.
