Ukraine

Belgium will invest €1.7 billion next year to assist Ukraine by drawing on its own tax revenue from frozen Russian assets, Prime Minister Alexander De Croo said, as the European Union mulls a broader windfall levy on profits from the sanctioned cash.

Most of the frozen Russian central bank assets — now more than €200 billion — are held in Europe, with the bulk of them at settlement giant Euroclear SA in Belgium. Those proceeds are subject to a 25% corporate tax in Belgium.

After meeting with Ukrainian President Volodymyr Zelenskiy in Brussels, De Croo told reporters Wednesday that Belgium’s tax proceeds will be used to finance military equipment, reconstruction and humanitarian aid for Ukraine.

More broadly, the EU, along with Group of Seven nations, are still discussing a plan to tax the profits generated from immobilized Russian sovereign assets and funnel the revenue to Kyiv.

On Wednesday, US Treasury Secretary Janet Yellen backed the idea, calling it a “reasonable proposal” that is distinct from actually seizing the cash.

De Croo said he hopes the EU will make a decision on the plan soon.