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Taxes on frozen Russian assets in EU already benefiting Ukraine

Taxes on frozen Russian assets in EU already benefiting Ukraine Iryna Mudra (Vitalii Nosach, RBC-Ukraine)

Taxes from income derived from frozen Russian assets, paid in Belgium, are already working for Ukraine, according to the Deputy Head of the Office of the President, Iryna Mudra, who until recently held the position of Deputy Minister of Justice.

Taxes are paid in Belgium because Euroclear, where Russian assets worth 191 billion euros are deposited, is located there.

Overall, there are two types of taxes on income. One of them, amounting to 1.7 billion euros, has already been allocated to the Ukrainian humanitarian fund.

"The funds did not go directly to Ukraine but were used to support refugees in Belgium. For this, Belgium did not need a decision from the European Union," said Mudra.

The second tax is the corporate income tax, totaling 1.28 billion euros. From this amount, Belgium has already provided Ukraine with approximately 200 million euros for the purchase of weapons.

Income from Russian assets

Iryna Mudra, Deputy Head of the Office of the President, announced that the European Union will be able to start the withdrawal of income from frozen Russian assets in favor of Ukraine for the year 2024. The amount will range from 5 to 8 billion euros, and the money will be received the following year.

During the summit on March 21, EU leaders discussed the issue of directing profits from frozen Russian assets to the purchase of weapons for Ukraine and reached a preliminary agreement.

Overall, Ukraine may claim 280 billion dollars of Russian assets frozen in various countries around the world. Specifically, according to unofficial information, 191 billion euros or 210 billion dollars of this amount are located in European countries.