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Ukraine to use income from frozen Russian assets in 2024

Sunday, 25 February 2024, 13:18
Ukraine to use income from frozen Russian assets in 2024
Ukraine's Prime Minister Denys Shmyhal. Stock photo: Getty Images

Ukraine's Prime Minister Denys Shmyhal stated that in 2024, Ukraine intends to access income from frozen Russian assets.

Source: Shmyhal at the Ukraine. Year 2024 forum 

Details: The Russian Federation's frozen assets abroad total more than US$300 billion.

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Ukraine has been unable to receive any of these funds for the past two years because Western countries where these funds are blocked face difficulties in confiscating them.

Some UK bankers and lawyers, for example, have warned that high-profile asset seizures risk undermining London's reputation as an international financial centre and raising concerns about the rule of law.

To avoid problems that may arise with the transfer of Russian money in favour of Ukraine, alternative proposals are being developed; so far, there have been two:

  • Bonds are issued using funds as collateral.
  • The scenario that has gained popularity among EU banks is to separate the interest accrued on seized assets and transfer it to Ukraine, while keeping the assets intact.

The latter is deemed the most acceptable.

International banks, seeking to avoid legal ramifications, urge the UK to establish certain legal principles before transferring frozen Russian funds to Ukraine.

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