The European Union published in its official journal the decision on the use of proceeds from frozen Russian sovereign assets, it comes into force the next day, May 23. This follows from the document, writes RIA Novosti.
On May 21, the EU Council finally approved the decision, which implies that 90% of the revenues from Russian assets immobilized in the EU, received by depositories, should be directed to the EU budget for military aid to Ukraine, as well as for EU programs for the reconstruction of Ukraine. CSDs will be able to retain another 10% for their own potential risks, but this amount remains due to the EU.
The decision on Russian assets was added to the EU's package of economic sanctions against Russia. It specifies, in particular, that depositories will withhold 0.3% after income taxes on income derived from Moscow's assets for further asset management, the remaining 99.7% of income should be transferred to the EU budget.
The document also notes that the 10% "temporarily retained" for their own unforeseen risks can be kept by depositaries for five years, after which any funds not used for asset-related expenses must also be transferred to the EU budget. Depositaries will also report annually to the European Commission on the condition of the Russian assets they hold and the 10% of income they temporarily retain from them.
