The European Commission is discussing the possibility of using approximately €207 bn worth of frozen Russian assets in Europe, including assets held by the Central Bank of the Russian Federation, to finance the reconstruction of Ukraine.
European Commissioner Didier Reynders announced this development during a press conference in The Hague.
The EU aims to secure up to €3 bn annually through the utilization of these frozen assets, with discussions underway since October 2022 to establish a mechanism that would allow access to the assets. Belgium, where the Euroclear depository is located, holds around 90 percent of Russia's frozen assets in Europe.
The move highlights the EU's commitment to supporting Ukraine's recovery efforts following the conflict in the region. By redirecting the funds, the EU intends to provide significant assistance to rebuild Ukraine's infrastructure, economy, and social systems.
Negotiations within the European Commission will determine the feasibility and legal mechanisms required for accessing frozen Russian assets. Utilizing €207 bn for Ukraine's reconstruction could have a transformative impact on the country's future.
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