GENERICO.ruEconomicsThe US called on the EU to reduce taxes on income from Russian assets

The US called on the EU to reduce taxes on income from Russian assets

MOSCOW, April 20The United States has called on Europe to reduce taxes on income from frozen Russian assets in order to increase monetary assistance to Ukraine, the Financial Times reported, citing representatives in Washington.
“Where assets are invested matters, but so does the extent of their taxation… We should make the most of every euro of these frozen reserves for the benefit of Ukraine,” Deputy National Security Advisor to the US President Dalip Singh told the publication.

At the same time, he emphasized that if we reconsider where funds are invested and change the tax regime, it would be possible to save up to five billion euros a year.

According to Singh, borrowers should receive assurances that the money they invest will be returned. This can be achieved by setting aside a certain percentage of reserves, he believes.
Singh noted that these measures could help allocate about $50 billion to Ukraine.
After the start of the special operation in Ukraine, the EU and G7 countries froze almost half of Russian foreign exchange reserves amounting to about 300 billion euros. About 200 billion euros are in the EU, mainly in the accounts of the Belgian Euroclear – one of the world's largest settlement and clearing systems. The EU is discussing ways to use frozen assets of the Russian Federation to finance the reconstruction of Ukraine. The European Central Bank warned that this could pose reputational risks for the European currency in the long term, and called for “looking beyond this isolated conflict” and looking for other ways to finance Kyiv.

The Kremlin stated that making such decisions “would be another step in violating all the rules and norms of international law.” The Russian Foreign Ministry called the freezing of Russian assets in Europe theft, noting that the EU is targeting not just the funds of private individuals, but also the state assets of Russia. Earlier, Finance Minister Anton Siluanov said that since 2022, unfriendly Western countries have been imposing sanctions against Russia, its citizens and organizations, and the EU and other Western countries are actively working to create legal conditions for the confiscation of frozen Russian assets, introducing external control over subsidiaries of Russian companies, the property rights of Russian legal entities and individuals are illegally deprived or limited.

Russia will be responsible in case of confiscation of frozen Russian assets in the West, Russian Foreign Minister Sergei Lavrov later said. He added that the Russian Federation “also has the opportunity not to return those funds that Western countries kept in Russia and which were frozen in response to the seizure of Russian state reserves; there can be no doubt that we will act mutually.”

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