Belgium will allocate €1.7 billion in tax revenue from frozen Russian assets to support Ukraine.

The Belgian government has received taxes generated from frozen Russian assets located within the country, totaling €1.7 billion for the year 2024. These funds will be allocated to aid programs for Ukraine.

This information comes from RBK-Ukraine citing VRT.

According to the publication, 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 plans to use this money to support Ukraine. The total amount of Russian assets currently blocked in Euroclear is approximately €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 its shares are owned by the Belgian Federal Government, while the rest belong to other municipal governments and banks in the country.

This company provided financial services to Russian companies and the government, but all transactions were frozen after Russia commenced its war against Ukraine and was subjected to international sanctions in response to its aggression. Russian assets, including cash, stocks, and loans, were frozen and are currently inaccessible to Russian entities.

Interest from these Russian billions is being transferred to a special account at Euroclear and is used to replenish European aid funds designated for Ukraine. In the fiscal year 2024, a total of €3.55 billion was allocated to such funds.

The first tranche of €1.55 billion was transferred in July 2024, while the second tranche of approximately €2 billion is expected to be transferred next month.

The Belgian government also taxes all revenues generated from the frozen Russian assets. In 2024, the total amount of these taxes reached €1.7 billion, which will be directed to aid for Ukraine.

Frozen Russian Assets

Remember, 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 subsequent repayment through revenues generated from frozen Russian assets.

We also reported that at the end of January 2024, EU ambassadors reached an agreement on using profits from frozen Russian assets to assist Ukraine.

At the same time, European Commission President Ursula von der Leyen proposed using profits from Russian assets for weapons for Ukraine.