The European Commission plans to create a RebuildUkraine fund to restore Ukraine. As part of this initiative, the EC will propose to send there income from the European assets of Russian businessmen against whom sanctions were imposed
The European Commission will consider a project on the use of income from the frozen assets of Russian businessmen subject to EU sanctions for recovery Ukraine. This is reported by Bloomberg with reference to the corresponding project.
According to the document, on May 18, the EC will propose an updated financial strategy to help cover Ukraine's $15 billion deficit over the next three months.
The Commission will also propose the creation of a fund called RebuildUkraine, where all resources for the restoration of Ukraine. As part of this initiative, the EU will consider using proceeds from confiscated assets from Russian individuals who have been sanctioned since the start of the special operation in Ukraine.
In addition, according to Bloomberg sources, the EC will offer Kyiv loans ranging from €7 billion to 9 billion to finance urgent government bills as part of this package.
Since the beginning of the Russian military operation in Ukraine, hundreds of businessmen, officials and military from Russia fell under EU sanctions: their assets and accounts are frozen, they are banned from entering the EU.
On May 9, head of European diplomacy Josep Borrell urged the EU to consider withdrawing Russia's frozen foreign exchange reserves to also help pay for Ukraine's post-conflict reconstruction costs. Borrell cited “billions of dollars” of assets seized by the United States as an example. from the Central Bank of Afghanistan, which, according to him, will later be used to compensate victims of terrorism and for humanitarian assistance to the country. The diplomat noted that “it was logical” consider similar steps with Russia's frozen reserves.
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According to the Central Bank, as of April 1, 2022, the volume of Russia's international reserves amounted to $606.5 billion. The Ministry of Finance previously reported that after the outbreak of hostilities, Western countries froze about half of Russia's gold and foreign exchange reserves (about $300 billion). At the same time, assets in Chinese yuan, monetary gold stored in Russia (as of February 1, about $132 billion), cash reserves and special drawing rights (SDR, about $24 billion) in the IMF remain legally out of reach for sanctions.
Earlier that the frozen Russian reserves must be transferred to Ukraine, said Ukrainian Prime Minister Denys Shmygal. “We are having these negotiations [on the withdrawal of Russian reserves] with the United States, with all our partners,” — he said. In early May, President of Ukraine Volodymyr Zelensky estimated the cost of restoring the country after the Russian special operation at $600 billion.
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