EU COUNCIL ADOPTS PLAN TO REGULATE USE AND HANDLING OF FROZEN RUSSIAN ASSETS, ASSIST UKRAINE by Tracey C. O'Neill
The EU Council on Monday adopted a plan to allow profits from the mobilized assets to be used for Ukraine. In a statement, the council lay bare its decision and newly adopted regulation clarifying the obligations of Central Securities Depositories (CSD) in possession of assets and reserves of the Central Bank of Russia deemed extraordinary revenues. 
Photo Credit: European Council
“After Russia launched its illegal and unjustified full-scale invasion of Ukraine in February 2022, the EU, in coordination with international partners, decided to prohibit any transactions related to the management of reserves as well as of assets of the CBR,” the statement read. “As a result of that prohibition, the relevant assets held by financial institutions in the EU member states are ‘immobilized’.”
Around €260 billion in Central Bank of Russia assets have been immobilized in the form of securities and cash in the jurisdictions of the G7 partners, the EU and Australia, with more than two thirds of those immobilized in the EU.
Photo Credit: European Commission
In October 2023 President of the European Commission (EC), Ursula von der Leyen, representing 27 member states, floated the plan to include windfall profits generated from immobilized assets, to be used in assisting Ukraine’s recovery and reconstruction.
Working to further the commission's funding initiative, the Council moved the plan forward into the New Year. In a social media post on Sunday, the Council wrote,
“Amid Russia’s brutal war of aggression, we continue to stand united in solidarity with Ukraine. Since the start of the war, 29 countries have provided energy supplies to Ukraine through the #EUCivilProtection Mechanism."
Monday’s announcement comes on the heels of unanimous approval of EU leaders for a €50 billion ($53 billion) long-term funding package for Ukraine on February 1.
Terming the Ukraine Facility a “major step forward,” von der Leyen, who visited Ukraine and its President Volodomyr Zelensky in a supporting posture on numerous occasions since Russia’s February 24, 2022 invasion, affirmed EU support.
"We will continue to deliver much-needed funding and predictability for our brave partner (Ukraine) and aspiring member. We aim to start payments in March."
“This locks in steadfast, long-term, predictable funding for Ukraine,” wrote Charles Michel, President of the European Council on X. “EU is taking leadership and responsibility in support for Ukraine: we know what is at stake.”