EU Council greenlights use of windfall profits of frozen Russian assets to support Ukraine

The EU Council on Tuesday greenlighted the use of windfall profits of Russian assets to support Ukraine.

Pointing to Russia's ongoing war against Ukraine, the council said in a statement that it had adopted a set of legal acts for profits stemming from "unexpected and extraordinary revenues" from Russian assets frozen in the EU to be used for "further military support to Ukraine."

The net profits will also be used to boost Ukraine's "defence industry capacities and reconstruction," it added.

"In the light of Russia's continued war of aggression against Ukraine, the Council today adopted a set of legal acts ensuring that the net profits stemming from unexpected and extraordinary revenues accruing to central securities depositories (CSDs) in the EU, as a result of the implementation of the EU restrictive measures, will be used for further military support to Ukraine, as well as its defence industry capacities and reconstruction," the EU Council announced in a statement.

According to the statement, central securities depositories (CSDs) holding Russian sovereign assets and reserves of more than €1 million ($1.09 million) are required to make a financial contributions from their corresponding net profits accumulated since Feb.15, 2024.

"The amounts will be paid by the CSDs to the EU on a bi-annual basis and will be used for further military support to Ukraine through the European Peace Facility, as well as with support to Ukraine's defence industry capacities and reconstruction needs with EU programmes, according to the following key: European Peace Facility 90% and EU programmes financed from the EU budget 10%," it said.