Due to uncertainty of further US support, Yellen approves the EU’s plan to tax the Russian Federation’s frozen assets.

US Treasury Secretary Janet Yellen strongly supported the EU’s plan to introduce a windfall tax on frozen Russian assets. This step will stimulate the attraction of new funds to support Ukraine.

Yellen’s comments came as US funding for Ukraine faces a new hurdle in Congress after the removal of Kevin McCarthy as House Speaker allowed a group of Republicans to delay the next aid package to Kyiv.

The governments of some EU countries were waiting for official US approval of a plan to use the profits obtained from more than €200B of frozen assets belonging to the Russian central bank before giving the green light to the plan.

It is noted that Russian assets in Euroclear Ltd. Had generated €750M in profit by the first quarter of this year. In Yellen’s opinion, Russia should suffer and pay for the damage it has caused.