EU Council approves confiscation of profits from Russian assets in favour of Ukraine

On 21 May, the EU Council approved the transfer of proceeds from taxable excess profits of frozen Russian assets to Ukraine.

Most of the funds will go to military support for Ukraine.

"The EU Council has confirmed its consent to using proceeds from the immobilised assets of the Central Bank of the Russian Federation in favour of Ukraine.

Annual revenues are expected to amount to approximately €2.5-3 billion. 90% of the expected revenues will be used for military purposes to support the defence of Ukraine," the report of the Permanent Mission of the Czech Republic to the EU says on Twitter (X).

A smaller share, 10%, will go to the recovery and reconstruction of Ukraine.

Permanent representatives of the European Union member states approved this initiative on 8 May.

In February, the EU agreed on another important stage in its plan to use Russia's frozen assets; it concerns the legal rules for storing excess profits from assets.

EU top diplomat Josep Borrell proposed redirecting interest earned on frozen Russian assets to Ukraine in March. According to the plan, 90% of the funds should go to the fund used to cover the cost of weapons for Ukraine.