The agreement was reached at a meeting of ambassadors in Brussels. There is no official decision so far.
EU countries achieved in their meeting on Wednesday, an agreement in principle on how the proceeds of Russia’s frozen funds should be used for the benefit of Ukraine. The agreement was reached at a meeting of the permanent representatives of the EU countries in Brussels.
According to the agreement, the proceeds should be divided into military support for Ukraine and support for Ukraine’s recovery. So far, there is no official decision on how to use the proceeds.
According to Wednesday’s agreement, 90 percent of the proceeds of the frozen funds going to Ukraine should be channeled through the EU peace fund to military support for Ukraine. In turn, 10 percent of the money going to Ukraine would be directed to the Ukraine support instrument of the EU budget.
The income from the frozen funds naturally means only a fraction of the approximately 300 billion euro pot, which is frozen from the Russian state. The amount is estimated to be around three billion euros per year.
EU countries it has been difficult to achieve a satisfactory outcome for all in the utilization of Russia’s frozen assets or even its revenues. The agreement has been hammered out for a long time, and along the way the discussion has concerned both the legality of the operation and the market reactions caused by it.
Some of the member states of the Union would like to receive about 300 billion euros frozen from the Russian government to support Ukraine, and not only the revenues generated from them. However, the decision regarding the revenues alone was debated among the member countries for quite a long time.
In the United States, it was recently decided to direct the funds frozen from Russia to support Ukraine, but a large pot of frozen assets is located specifically in Europe.
The majority of the frozen funds are located in Belgium. Along the way, other member countries have also been rubbed by a tax slice, the amount of which goes to Belgium.
Belgium, on the other hand, has assured that the money it taxes also ends up from the country to support Ukraine.
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