Belgium To Allocate EUR 1.7B In Taxes From Frozen Russian Assets To Aid Ukraine

(MENAFN- UkrinForm) The Belgian government has collected EUR 1.7 billion in taxes generated from frozen Russian assets in the country over the past year and will use these funds to support aid programs for Ukraine.

That's according to Belgian news outlet VRT , Ukrinform reports.

"Frozen Russian assets held by securities giant Euroclear in Belgium generated EUR 1.7 billion in tax revenue for Belgium last year. That's according to Euroclear's annual figures. The Belgian government will use the cash to provide aid to Ukraine. The total amount of Russian assets blocked at Euroclear amounts to some EUR 183 billion," the statement reads.

Euroclear, headquartered in Brussels, is a global financial player. Belgium's federal government holds some 12% of the company's shares. Other Belgian banks and governments also hold stakes.

Euroclear also provided financial services to Russian companies and governments. But since the war in Ukraine began, international sanctions have been imposed on Russia. As a result, Russian assets including cash, shares and bonds at Euroclear are frozen. They can no longer be accessed by their Russian owners. By the end of 2024, these frozen assets amounted to EUR 183 billion.

The interest and dividends on all these Russian billions end up in a blocked account at Euroclear. That money is reinvested by Euroclear and is largely earmarked for a support fund: the European Fund for Ukraine.

Read also: Euroclear to transfer another EUR 2B in proceeds from frozen Russian assets in March

During the 2024 financial year, EUR 3.55 billion was contributed to the fund. A first instalment of EUR 1.55 billion was paid into the fund in July 2024, a second payment of EUR 2 billion will follow next month.

The Belgian state also levies a tax on all proceeds generated by the Russian assets. In 2024, this amounted to EUR 1.7 billion. The Belgian government previously said the tax would also be used to fund aid for Ukraine.

In 2024, G7 nations agreed on a $50 billion (EUR 45 billion) loan program for Ukraine, to be repaid using windfall profits from frozen Russian assets.

The EU committed EUR 18.1 billion of its portion of this loan, contingent on Ukraine's progress in reforms toward EU membership.

According to Ukraine's Ministry of Finance, the country expects to receive $22 billion from the G7 loan in 2025, with additional funds disbursed in 2026-2027.

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