12 february, 2024
On February 12, the EU Council adopted a decision to regulate the future mechanism for using the proceeds of frozen Russian assets in the EU in favor of Ukraine
This was reported by the press service of the EU Council.
The Council adopted a decision and a regulation clarifying the obligations of central securities depositories that hold assets and reserves of the Central Bank of Russia (CBR) frozen by sanctions.
“The Council decided in particular that CSDs holding more than €1 million of CBR’s assets must account extraordinary cash balances accumulating due to EU restrictive measures separately and must also keep corresponding revenues separate. In addition, CSDs shall be prohibited from disposing of the ensuing net profits,” the statement says.
Each central security depository may request its supervisory authority to authorise a release of a share of those net profits in view of complying with statutory capital and risk management requirements.
“This decision paves the way for the Council to decide on a possible establishment of a financial contribution to the EU budget raised on these net profits to support Ukraine and its recovery and reconstruction at a later stage. This financial contribution may be channeled through the EU budget to the Ukraine Facility on which the Council and the European Parliament reached a provisional agreement on 6 February 2024,” the European Council underlines.
Ukraine’s reaction
Ukrainian Foreign Minister Dmytro Kuleba welcomed the EU’s decision and encouraged further steps to use the frozen Russian assets for Ukraine.
“I welcome the European Council’s decision paving the way for the use of extraordinary revenues from the frozen Russian assets. We encourage further steps to enable their practical use for Ukraine’s benefit. These steps must be ambitious and prompt,” he said in a social media post.
“Ukraine is ready to continue working with partners on reaching our ultimate goal: making Russian assets available to Ukraine. The aggressor must pay,” Kuleba added.
Why do governments make it difficult. Just give Ukraine the money…period, full stop.
I wish it were so easy too Cap, but as we all know, the full and exhaustive legal process must be followed otherwise some years or even decades later there will be a smart arsed ambulance chasing fame seeking lawyer who finds a loophole and the whole thing becomes a giant clusterfuck.
What gets me angry about all of this is that mafia land is breaking every law and rule there is to break in a war, yet our pencil pushers insist of following the law until everything’s too late.
I don’t know, Cap. But, slowness is a typical feature of Western governments.
I hear you OFP. I initially voted for Trump thinking or hoping that a business guy had a chance of cleaning up the bureaucracy. Notwithstanding his feelings about Ukraine he was an absolute failure. His advocates argue he was bushwhacked by the bureaucracy but honestly I believe it’s bull shit. I’ve seen competent heads of companies restructure organizations with a quarter million employees and do it successfully., not by alienating those that needed change, but getting them to advocate change, as good leaders would do. Trump was simply a good marketing guy but I don’t think he would know what a good business operation is if it hit him upside his head.
I don’t buy that either, Sir Cap, that he was surprised by the bureaucracy, not for a moment. Regardless if he is a good or bad businessman, being one makes bureaucracy a part of the job.
Can’t argue with the rest of your post, either.