The EU has decided not to transfer 5 billion euros in profits from frozen Russian assets over the first 2 years of the war to Ukraine, Politico reports.

The profit was decided to be kept by the Euroclear investment fund, which holds most of the Russian assets, as a "buffer" to pay for current and potential lawsuits by Russia and other countries.

When the European Commission proposed in March to use 90% of the proceeds from frozen Russian assets to buy weapons for Kyiv, it found that the profits were only to be used after February 15, 2024. And the profits earned before then will remain in Euroclear.

The financial institution can also retain 3% of its revenue indefinitely "to ensure the efficiency of its work." And another 10% of the profit after February 2024 as an additional guarantee.

Ukraine insists on receiving these funds, saying that this amount is equivalent to a year of the IMF program.

"I have never heard that 5 billion euros is a buffer for Euroclear. This is too much money to be a buffer," Justice Minister Malyuska said.

Ukrainian officials also point out that Euroclear suffered much less damage from the war - about 34 million euros. This figure was given by the investment fund's management. However, lawyers say that retroactive profit clawback would be a legal minefield when the rule is applied retroactively, which explains the EC's decision. Malyuska also admits this.