On Tuesday, the Council of EU countries in Brussels approved the use of proceeds from frozen Russian assets. 90 percent of the money must be spent on military aid to Ukraine and ten percent on reconstruction.
According to the European Commission, approximately 210 billion euros from the Russian central bank in the EU have been frozen due to Russia’s war of aggression against Ukraine. The European Commission plans to send the first funds to Ukraine as early as July. The income amounts to 2.5 to 3 billion euros per year. The European Commission presented its proposal for its use during the EU summit in March. According to the proposal, 90 percent of the money should flow to weapons and ammunition for Ukraine and 10 percent to the defense industry and the reconstruction of the country.
Concession to neutral countries
This should be seen as a concession to neutral states such as Austria, which do not want to participate directly in the supply of weapons and ammunition. It was therefore agreed that part of the interest income should also flow to other financial assistance. There are currently no plans to gain direct access to the Russian Central Bank’s funds through an expropriation decision. EU representatives have so far cited legal concerns and possible retaliation from Russia as reasons.
The possessions became fewer
In Austria, frozen Russian assets have decreased significantly. While it was still 2 billion euros at the end of 2022, according to the Directorate of State Security and Intelligence (DSN), it is currently only 1.5 billion euros. The reason lies in exchange rate fluctuations and exemptions, according to the DSN. The National Bank (OeNB) confirmed this in response to APA’s request. Due to the exceptions, the National Bank has also released frozen assets.
Source: Krone
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