In July, the European Fund for Ukraine will receive the first 1.55 billion. euro transfer. The money comes from the proceeds of Russian assets, which have a total value of about 260 billion in Western hands. euros.
Euroclear Bank is an international financial institution based in Brussels, specializing in the execution of transactions in the capital markets. It contains frozen Russian assets worth about 200 billion euros.
This is roughly two-thirds of all the assets frozen by the Russian central bank held by the G7 countries and the EU, which the country held abroad at high profits. We're talking about $260 billion worth of cash and securities in total. euros.
At the end of last year, Euroclear received 4.4 billion from seized Russian assets. EUR revenue, and the total profit may reach EUR 20 billion by 2027. euros.
The money will not go to Russia, but to the attacked Ukraine. The EU agreed on this in June. The money will go to Kiev through intermediary countries: Germany, the Czech Republic and Denmark, which will probably also make money from it.
Meanwhile, Ukraine itself found itself in a difficult financial situation. As The Economist wrote in early July, the country has a month to avoid bankruptcy. Over the past two years, creditors have agreed to suspend its debt payments, but the moratorium on private foreign bondholders expires on August 1.
By the end of the year, Ukraine's debt-to-GDP ratio will reach 94 percent. According to The Economist, this is a lot for a country with such a troubled financial history and economic size. While the sums provided by the Allies are impressive, they are in the nature of artillery, tanks and special purpose funds rather than cash.
