Belgium to allocate €1.7 billion in Russian frozen assets taxes to help Ukraine
Photo: Belgium to allocate €1.7 billion in taxes from frozen Russian assets to help Ukraine (Getty Images)
The Belgian government has received €1.7 billion in taxes for 2024, generated from frozen Russian assets in the country. These funds will be directed to aid programs for Ukraine, VRT reports.
According to the media outlet, the frozen Russian assets held in Belgium's largest securities depository, Euroclear, have generated €1.7 billion in tax revenue for the country.
The Belgian government will use this money to assist Ukraine. The total amount of Russian assets currently frozen in Euroclear is around €183 billion.
It is noted that Euroclear is one of the largest companies of its kind and a significant player in the global financial market. However, only about 12% of the company's shares are owned by the Belgian Federal Government, with the rest held by other municipal governments and banks in the country.
This company had provided financial services to Russian companies and the government, but all transactions were frozen after Russia launched its war against Ukraine and faced international sanctions in response to its aggression. Russian assets, including cash, stocks, and loans, have been frozen and are currently inaccessible to Russian entities.
The interest from these Russian billions is transferred to a special account at Euroclear and used to replenish European aid funds designated for Ukraine. In the 2024 financial year, €3.55 billion was allocated to such funds.
The first tranche of €1.55 billion was transferred in July 2024, and the second tranche, amounting to around €2 billion, is expected to be transferred next month.
The Belgian government also imposes taxes on all income generated from frozen Russian assets. In 2024, these taxes amounted to €1.7 billion, which will be directed to help Ukraine.
Frozen assets of Russia
Ukraine has already started receiving funds through the Extraordinary Revenue Acceleration for Ukraine (ERA) program. This mechanism involves receiving $50 billion from G7 countries, with repayment to be made from the proceeds generated by the use of frozen Russian assets.
At the end of January 2024, EU ambassadors reached an agreement on using the profits from frozen Russian assets to assist Ukraine.
European Commission President Ursula von der Leyen proposed using the profits from Russian assets for weapons to support Ukraine.
