The EU does not want to transfer €5B in income from the frozen assets of the Russian Federation to Ukraine.

The EU decided not to transfer €5B to Ukraine from the proceeds received from the investment of the frozen assets of the Russian Federation in 2022-2023. This money will be in Euroclear, the body that holds most of the assets belonging to the Russian Federation’s Central Bank in the EU.

Earlier, the EC proposed to use 90% of the revenues from Russia’s frozen assets in Europe to purchase weapons for Ukraine, but only funds received after February 15, 2024 – the date when EU countries agreed to transfer them to Ukraine. The EC decided that €5B would be a buffer for paying current and potential lawsuits in the Russian Federation and other countries.

The Minister of Justice Denys Malyuska noted that the amount is larger than any potential lawsuits. However, lawyers explain that the retroactive seizure of profits would be a legal minefield, which explains the EC’s decision.