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PM considers extra tax on Russian goods to channel funds to Ukraine

PM considers extra tax on Russian goods to channel funds to Ukraine Prime Minister of Ukraine, Denys Shmyhal (Photo: Vitalii Nosach-RBC-Ukraine)
Author: Daria Shekina

Ukraine, along with its partners, is discussing the possibility of imposing an additional tax on Russian goods sold by Russia on international markets. The proceeds are needed for the recovery of the country, states Ukrainian Prime Minister Denys Shmyhal on Telegram.

The head of the government has revealed that the Cabinet is currently working on confiscating frozen Russian assets. An International Registry of Damage has already been established, and our country proposes the creation of an International Compensation Commission and Compensation Fund.

"It is important to confiscate not only sovereign assets but also assets of Russian oligarchs," emphasized Shmyhal.

He reminded that, according to the World Bank, Ukraine needs $486 billion for recovery. Frozen Russian assets amount to only about $300 billion.

"Therefore, we are discussing the possibility of imposing additional taxation on Russian goods sold on international markets and directing this tax to Ukraine," the Prime Minister noted.

Confiscation of Russian assets

Recently, the idea of confiscating frozen assets of Russia by Western countries has been increasingly discussed. This comes against the backdrop of the US Congress's inability to allocate funds for assistance to Ukraine.

As Deputy Prime Minister for Restoration of Ukraine - Minister for Communities, Territories and Infrastructure Development of Ukraine Oleksandr Kubrakov revealed in an interview with RBC-Ukraine, our country may receive Russian money at best this year, but more realistically next year.

Recently, the President of the European Commission, Ursula von der Leyen, proposed using the proceeds from frozen Russian assets for military assistance to Ukraine.