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EU law sets aside profit from frozen Russian assets for possible use in Ukraine

Photo by Jason Leung / Unsplash

The European Union adopted a law that sets aside profit generated from interest and other sources on frozen Russian assets held inside the EU in a first step toward using those assets to benefit Ukraine.

The new law requires clearing houses, such as Everclear which holds most of the roughly $300 billion in Russian assets frozen after the invasion of Ukraine, to set aside profit generated on those assets.

The law, which applies to all institutions holding at least $1 million in frozen Russian assets, could generate about $15 billion over the next four years, the EU estimates.

Passage of the law comes as analysts increasingly say Ukraine is unlikely to receive the frozen Russian assets themselves to officials look for alternative ways to help fund the reconstruction of Ukraine.

EU member states worry courts may eventually rule the confiscation of such assets illegal and they fear that seizure could prompt international investors to pull out of the euro currency for concern their assets could one day be seized too.

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