Decision on use of frozen Russian assets will be made in 2024 – Ukrainian Foreign Minister

Ukrainian Foreign Minister Dmytro Kuleba expects the decision regarding the utilisation of frozen Russian assets to be made in 2024.

According to Dmytro Kuleba, together with its partners, Ukraine will decide on the fate of frozen assets of the Russian Federation in 2024.

"That is, this decision will be made in 2024. I have no reason to doubt this, knowing the dynamics of these discussions," Kuleba said.

He added that the question of what to do with frozen assets is a complex one, so multiple rulings will be made regarding different facets of the issue.

"Which is to say, the income tax payable on the profits earned by a given frozen asset, the profits themselves, and finally the principal amount of the asset. But we’re certainly on the road to working this all out and have already gotten results; for us to finalise these decisions in 2024 is all but guaranteed."

Earlier, permanent representatives of the EU countries, at a meeting on 29 January, approved the creation of a dedicated account into which taxable profits earned as interest by frozen Russian assets will be transferred.

Last month, EU foreign ministers reached a political agreement regarding the plan to use Russian assets in support of Ukraine.

Since many EU member states are against seizing the assets themselves due to legal difficulties, they have decided upon a compromise: tax the profits earned by the frozen assets and transfer those funds to Ukraine.

On the other hand, the United States is promoting the idea of confiscating assets in their entirety. Last week, the relevant committees of the US Senate and House of Representatives approved legislation that will define conditions under which Russian assets can be seized and subsequently transferred to Ukraine for the rebuilding effort.