The US demands a reduction in income taxes on frozen Russian assets: What it means for Ukraine

The United States has called on the European Union to reduce taxes on profits earned from frozen Russian assets in order to increase financial support for Ukraine. This was reported by the Financial Times.

Daleep Singh, US Presidential Advisor on International Economic Affairs, revealed plans to raise tens of billions of euros for Ukraine through loans backed by future profits from frozen assets.

This strategic move could include a bond issue for the private sector or a loan from one or more G7 governments, which would be repaid primarily from interest income.

Singh emphasized the importance of "maximizing the annual interest income" from these assets to make the idea work. He believes that with discussions on where to reinvest the funds and changes in the tax regime of income streams, the amount of interest payments could increase to €5 billion a year.

"It is important not only where the capital is invested, but also how it is taxed. We have to maximize every euro of these immobilized reserves in favor of Ukraine," the advisor emphasized.

At the same time, he emphasized the need to provide creditors with guarantees of repayment, which can be achieved by setting aside a certain percentage of reserves.