EU set to use profits from confiscated Russian assets to rebuild Ukraine

The EU Council adopted on February 12 a regulation that paves the way for the use of profits from confiscated Russian assets to finance Ukraine's reconstruction.

The move, which is in line with steps taken by the G7 countries, establishes a legislative route by which profits from confiscated Russian assets could, under certain circumstances, eventually make their way to Ukraine through the EU budget, according to Detaly.co.il.

The Council ruled that central securities depositories, such as Belgium's Euroclear, which hold more than €1 million in Russian Central Bank assets, must set aside any proceeds derived from them and keep them separately. According to Euroclear, which holds most of the frozen Russian assets in the EU, these revenues amount to more than €4 billion a year.

"This decision paves the way for the Council to decide later on the possible establishment of a financial contribution to the EU budget derived from these net gains to support Ukraine and its recovery and reconstruction," the Council said in a press statement.

The EU froze about 200 billion euros of Russian assets shortly after Moscow launched a full-scale invasion of Ukraine in February 2022.