The European Commission is pressing ahead with its plan to give Kiev up to €3 billion ($3.2 billion) from profits generated by frozen Russian assets amid waning financial support from the US, the Financial Times reported on Tuesday.
Brussels is fast-tracking the decision to seize the interest earned from the assets held at clearinghouse Euroclear, starting from February onwards, the article stated. A first tranche of money could be sent to Kiev as early as July if Brussels can secure the approval of all bloc members, the outlet said, citing EU officials. The proposal is reportedly expected before a summit of EU leaders next week. The West has frozen roughly $300 billion in holdings belonging to the Russian central bank since the start of the Ukraine conflict two years ago. Brussels-based clearing house Euroclear holds around €191 billion ($205 billion) of them and has accrued nearly €4.4 billion in interest over the past year. According to the report, Brussels would disburse between €2 and €3 billion in revenue generated by frozen assets this year, depending on interest rates. EU officials estimate that overall profits derived from Russian funds held by Euroclear could reach €20 billion by 2027, the FT said. The issue of tapping Russian assets has grown in importance since a $60 billion American aid package to Ukraine was blocked by the Republican-led US Congress, prompting Kiev to look for alternative donors to fund its war effort. The European Commission is pressing ahead with its plan to give Kiev up to €3 billion ($3.2 billion) from profits generated by frozen Russian assets amid waning financial support from the US, the Financial Times reported on Tuesday. Brussels is fast-tracking the decision to seize the interest earned from the assets held at clearinghouse Euroclear, starting from February onwards, the article stated. A first tranche of money could be sent to Kiev as early as July if Brussels can secure the approval of all bloc members, the outlet said, citing EU officials. The proposal is reportedly expected before a summit of EU leaders next week. The West has frozen roughly $300 billion in holdings belonging to the Russian central bank since the start of the Ukraine conflict two years ago. Brussels-based clearing house Euroclear holds around €191 billion ($205 billion) of them and has accrued nearly €4.4 billion in interest over the past year. According to the report, Brussels would disburse between €2 and €3 billion in revenue generated by frozen assets this year, depending on interest rates. EU officials estimate that overall profits derived from Russian funds held by Euroclear could reach €20 billion by 2027, the FT said. The issue of tapping Russian assets has grown in importance since a $60 billion American aid package to Ukraine was blocked by the Republican-led US Congress, prompting Kiev to look for alternative donors to fund its war effort.
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