EU Should Confiscate Frozen Russian Assets, Says Ukrainian Prime Minister

During a meeting with the Vice President of the European Commission, Vera Jourova, in Kyiv, Ukrainian Prime Minister Denys Shmyhal stated that he expects the European Union to confiscate frozen Russian assets in 2024.

The Ukrainian Prime Minister announced this on social media.

"We look forward to our further effective work with the EU to develop a mechanism for the confiscation of frozen Russian assets. The 'Russia will pay' principle should be implemented next year," Shmyhal wrote.

The day before, Vice President of the European Commission Vera Jourova arrived in Kyiv on a working visit. During the meeting, the parties discussed Ukraine's further integration into the EU, in particular, the country's progress in fulfilling the requirements set out in the European Commission's report.

Earlier this year, Belgium set a precedent by allocating 1.7 billion euros to Ukraine from taxes paid on the interest generated by millions of frozen Russian assets. Belgium also announced the creation of a special Ukrainian fund to finance the purchase of military equipment, humanitarian support, the European Peace Fund, and macro-financial assistance for Ukraine. Notably, Belgium holds the largest share of frozen Russian assets, amounting to 180 billion euros.

"The source of this fund will be the billion-dollar Russian assets frozen in Belgium. We have an income tax on these frozen assets. Last year, we understood that 100% of the income tax from these assets should go to the benefit of the Ukrainian people," stated Belgian Prime Minister Alexander De Croo.

Subsequently, Ukrainian Foreign Minister Dmytro Kuleba called on international partners to find a way to gain access to the excess profits from frozen Russian assets and redirect them to the reconstruction of Ukraine after Russian aggression.

Since the full-scale invasion of Russia into Ukraine in 2022, EU and G7 countries have frozen the foreign assets of the Central Bank of Russia totaling around 300 billion euros. Additionally, private assets of Russian oligarchs subject to sanctions have also been frozen.