The European Commission is preparing to open a series of discussions with EU member states this week to map out a plan for taxing profits generated by frozen assets belonging to the Russian central bank, with the goal of channeling funds to support Ukraine. This development has been reported by Bloomberg.
Bloomberg notes that the Commission intends to outline a legal mechanism for transferring asset-derived revenues into the EU budget. On Thursday, September 7, initial talks will take place with Spain, Belgium, Italy, France, and Germany, followed by broader negotiations with all EU members in the coming week.
The frozen holdings of the Bank of Russia, valued at about 215 billion dollars, are expected to yield roughly 3 billion dollars in profits. A large portion of these assets consists of cash and deposits, with a notable concentration in Belgium.
Some member states have cautioned that diverting asset income to support EU programs could influence reserve holders’ perception of the euro and their willingness to hold euro-denominated assets. Earlier this year, Ursula von der Leyen expressed the intention to levy taxes on these assets before the summer recess, but the schedule has since shifted.
According to Nikkei, since February 24, 2022, the European Union and the so‑called “Big Seven” economies have been operating within the framework of sanctions policy. It is estimated that roughly 300 billion euros (about 328 billion dollars) of Bank of Russia assets remain frozen within EU territory.
In prior discussions within the European Commission, the scope and scale of Russian assets frozen in the EU have been a recurring topic of debate, with ongoing efforts to define permissible channels for applying any revenues in support of Ukraine and related humanitarian or stabilization initiatives. The evolving situation underscores the EU’s approach to sanctions enforcement and the potential for revenue use to align with broader European policy priorities and member state perspectives, including those in North America and other allied regions that monitor these movements with interest (Bloomberg, Nikkei).