Ukraine will receive the first payment from frozen Russian assets this summer.

The EU has prepared a draft law, according to which Ukraine can start receiving profits from frozen Russian sovereign assets as early as July of this year. As Bloomberg writes, the draft law envisages the introduction of a tax on profits received from Russian funds “to use approximately €3B per year to finance the supply of arms to Ukraine and to stimulate its defense industry.”

It is noted that a share of the revenues received since February 15 will be transferred to the EU twice a year until sanctions against the Russian Federation are lifted. Initially, the funds will be allocated to the European Peace Fund, which pays for the supply of weapons to Kyiv, and the Ukraine Support Fund.

Part of the profit will remain with the central securities depositories to cover the costs of asset management and “cope with any risks, including possible retaliatory measures by the Russian Federation.”