EU seeks 'exit tax' on sanctioned Russians' assets to squeeze Kremlin

European officials are considering imposing a "exit tax" on the assets and capital gains of sanctioned individuals leaving Russia.

Brussels is considering implementing a tax on sanctioned individuals when their assets or capital profits are transferred from an EU Member State to a third country.

If a Russian resident on Brussels' sanctions list receives rent in the EU and wishes to transfer the income overseas, taxes would be imposed.

A draft European Commission document states that “the framework has to be general and would not target particular countries,” and could be “activated for one or more third countries, at any time, based on a set of clear objective criteria.”

The EU countries would be responsible for implementing the sanctions-related tax, while the Commission would propose a formal act establishing the circumstances for triggering the exit tax.

To impose the tax, Article 155 of the EU treaty must be ratified by all EU countries in unanimity.

It is believed that the exit tax is merely one of the measures under consideration "to finance the restoration of Ukraine."

There are more measures under consideration, including the transfer of funds from EU nations' frozen Russian assets, which would subsequently be redistributed to Ukraine; voluntary contributions by EU countries; and a new charge obliging member states to contribute to the EU budget.

By fLEXI tEAM