The EU will not be able to transfer to Ukraine profits for 2023 from Russian assets in Euroclear – Kommersant
[ad_1]
The European Union will not be able to transfer to Ukraine the profits for 2023 from the reinvestment of Russian assets frozen on the international Euroclear platform, a British newspaper reports Financial Times (FT). Over the past year, the Euroclear group earned €4.4 billion from investing in Russian assets.
The publication states that the law allowing the use of income from Russian assets does not have retroactive effect. For this reason, it will most likely not be possible to use Euroclear’s €4.4 billion profit for 2023.
The European Commission is developing legislation on the confiscation of profits from Russian assets. At the same time, the United States insists on the complete confiscation of frozen assets of the Russian Federation. However, this idea, according to the newspaper, threatens the stability of the euro. According to Germany, France and the European Central Bank, this could lead to a massive outflow of capital from other central banks.
In turn, Euroclear said it had already faced claims due to the blocking of assets, adding that the likelihood of “adverse decisions” was high. The company emphasized that it aims to minimize any risks associated with the decisions of the European Commission.
Today, February 1, the EU summit was held in Brussels, at which approved a mechanism for transferring income from frozen Russian assets to help Ukraine. It is assumed that the income will be stored in special accounts, and after the necessary taxes are written off, the money will go to the budget and go to help Ukraine.
After the start of a special military operation in Ukraine, the European Union and G7 countries froze almost $300 billion of Bank of Russia assets, most of which are in Euroclear.
Read more about the EU mechanism in the Kommersant FM article. “The European Union is skimming profits from assets”.
[ad_2]
Source link
