EC might direct profits from Russian assets to Ukrainian defense industry

Today, the European Commission will suggest to EU countries that future profits should be used for the Ukrainian defence industry, according to a draft seen by the Financial Times, Report informs.

EU sanctions have immobilized about €191 billion of sovereign Russian assets on the books of Euroclear. The Brussels-based central securities depository made €3.25 billion in profit after tax since the start of the war by reinvesting cash balances from maturing securities, which belong to Russia’s central bank or other sanctioned individuals.

The EU has agreed to set aside Euroclear’s extraordinary profits and plans to confiscate them in the future for Ukraine — but only those generated after mid February, when the rules came into force.