A European Commission proposal would separate proceeds generated from frozen Russian from the frozen assets themselves in a step toward toward using the funds for the reconstruction of Ukraine, a European Union official told Politico.
European proposal would separate proceeds from frozen Russian assets as first step in transfer to Ukraine reconstruction, Politico reports
Under the proposal, the clearinghouse that holds much of the frozen Russian assets would have to deposit the proceeds generated from them into a separate account, making it easier to target for Ukrainian reconstruction spending, the official, who requested anonymity, told Politico.
If that proposal is accepted, the EU executive would then have to come with a second proposal that would transfer the cash to the budget of the EU and then to Ukraine, the offiicial said.
Some $280 billion in frozen Russian assets have been held by Western nations since the Russian invasion of Ukraine in February of last year, mostly at Belgian clearing house Euroclear.
While many of Ukraine's allies want the money used to help rebuild the country, a project likely to cost hundreds of billions of dollars, others say the permanent confiscation of such assets would threaten the reserve currency status of the euro and the dollar as other countries fear the West could seize their reserves as well.
