US Treasury Secretary Yanet Yellen described the European Union’s proposal to impose a tax on profits from frozen Russian assets as “reasonable”. According to him, the USA is discussing this initiative with the EU. This was reported by Bloomberg.
“This is a reasonable proposal. We are discussing this idea with the EU,” Yellen said in an interview with the publication. The tax is a different approach than the direct withdrawal of funds emphasized in the United States, she added.
The EU also concluded that direct seizure of frozen assets would be illegal. This led to an alternative idea: introducing a tax on profits from these funds. Paving the way for profits from Russian assets to be used for Ukraine’s needs could strengthen U.S. support for more aid to Kiev. Bloomberg adds that the Biden administration is trying to allocate $24 billion but is facing increasing skepticism from Republicans.
US support could pave the way for discussions on imposing taxes on the Russian Federation’s frozen assets in Europe. Previously, ECB president Lagarde criticized the idea and said it threatened the financial stability of the euro zone.
But there is growing support in the US Congress for the idea of directly seizing Russian assets. This is seen as a way to defuse criticism over the cost of aid to Ukraine. According to media reports, the White House still fears that such a step would create a negative precedent.
Recently, AK potential customers Consultations with EU countries on the fate of blocked Russian funds.
Previously European Commission said About the idea of u200bu200bseizing interest in Russian assets.