EU member states have also joined a growing chorus of Western allies urging Belgium to transfer proceeds from Russia’s frozen assets to Ukraine, Politico reported. An EU diplomat expressed displeasure that a significant portion of the windfall is expected to go to the Belgian tax authorities.
The main concern is that Belgium receives about €1.7 billion in corporate tax revenue a year from the frozen Russian assets, which are currently held by Euroclear, a Brussels-based securities depository. The EU diplomat emphasized that the tax revenue accumulated over the years could easily amount to several billion euros, funds that Ukraine desperately needs to finance its defense expenses.
However, the Belgian government sees it differently. A Belgian official denied the accusations, stating that 49% of the tax revenue from these assets is used for military equipment, so there is no question that only the Belgian budget will be fattened by the windfall. Another official pointed out that many Western companies generate significant profits in Russia, which are then quietly paid into the country’s budget, without supporting Ukraine.
In a related development, according to two EU diplomats, the EU is considering giving neutral countries an opt-out from its initiative to use proceeds from frozen Russian assets to buy arms for Ukraine. The proposal is about the creation of two separate funds: one for non-military aid, and the other specifically for the purchase of weapons. In the latter, neutral countries such as Austria, Ireland, Malta and Cyprus should not participate. The European Council is expected to present the new proposal next week, which will be discussed by EU ambassadors on May 8.
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Tags: member states send Czech Republic Belgium Russian money
