Belgium to allocate €1.7 billion in taxes from frozen russian assets to help Ukraine

“The frozen russian assets held in the largest securities depository Euroclear in Belgium have generated 1.7 billion euros of profit for the country through taxes, according to the annual data provided by Euroclear. The Belgian government will use this money to help Ukraine. The total amount of russian assets currently blocked in Euroclear is about 183 billion euros,” the statement said.

As noted, Euroclear is one of the largest companies of its kind and an influential player in the global financial market. At the same time, only about 12% of the company's shares are owned by the Federal Government of Belgium, the rest belong to other municipal governments and banks.

This company used to provide financial services to russian companies and the government, but all transactions were frozen after russia started a war against Ukraine and was subject to international sanctions in response to the 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 reportedly being transferred to a special account at Euroclear and used to replenish European aid funds earmarked for Ukraine. In fiscal year 2024, the amount of 3.55 billion euros was transferred to such funds. The first tranche of €1.55 billion was transferred in July 2024, and the second tranche of about €2 billion is expected to be transferred next month.

The Belgian government also imposes a tax on all proceeds generated from russian frozen assets. In 2024, these taxes amounted to 1.7 billion euros, which will be used for aid for Ukraine.

Source: VRT