Bloomberg: EC plans to introduce a tax on blocked assets of the Central Bank of the Russian Federation
The European Commission this week will begin meetings with EU member states to lay out a plan to introduce a tax on profits from the frozen assets of the Central Bank of Russia to restore Ukraine. It is reported by Bloomberg.
According to Bloomberg, the European Commission will propose how to legally transfer asset income to the EU budget. On Thursday, September 7, negotiations will be held with Spain, Belgium, Italy, France and Germany, next week – with all EU countries.
It is expected that the assets of the Central Bank of the Russian Federation blocked in the EU in the amount of $215 billion will bring $3 billion in profit. More than half of the assets are cash and deposits. Most of the funds are in Belgium.
A number of countries have raised concerns that the use of asset income could push reserve holders away from the euro. Earlier, Ursula von der Leyen announced her intention to introduce a tax before the summer holidays, but the deadlines have been moved.
According to the Nikkei, since February 24, 2022, the EU and the G7 countries have blocked about €300 billion ($328 billion) of Russian Central Bank assets on their territory as part of the sanctions policy.