Two-thirds of funds recovered from Yanukovych team can be used only after budget revision – finance ministry

Some US$1.1 billion, or about UAH 30 billion, confiscated from former Ukrainian President Viktor Yanukovych and his entourage have been transferred to the account of the State Treasury; however, revenue exceeding the target can only be used after the amendments are made to State Budget, according to the Ukrainian Finance Ministry`s website.

The state budget for 2017 provides for revenue worth UAH 11.5 billion from special confiscation and it clearly stipulates that the funds will be spent on the country`s defense and security sector, support of farmers, regional social and economic development, as well as be allocated to Regional Development Fund, etc., the report said.

”The excess of over UAH 11.5 billion is counted, but it can be used only after the amendments are made to the Law on the State Budget. Confiscated funds being a one-time receipt have certain restrictions in accordance with the budget legislation, and can be used exclusively for one-time expenses,” the ministry said in a statement.

The finance ministry also noted that bonds seized in the accounts of a number of non-residents had different maturities. All issues of bonds, except for one of $200 million, had been paid off before the end of 2016, and the funds were credited to the accounts. Thus, the amount of $1.1 billion includes both the body and the accrued interest.

At the same time, the amount of $1.5 billion, which was debating during the formation of the bill on special confiscation in 2015-2016, included bonds and funds in the accounts both in Oschadbank and Ukrgazbank, the finance ministry explained.

As UNIAN reported, on April 28, Secretary of the National Security and Defense Council (NSDC) of Ukraine Oleksandr Turchynov and Prosecutor General Yuriy Lutsenko announced the entry into force of the court`s decision on crediting to the state budget $1.5 billion, arrested in the accounts of Viktor Yanukovych and his entourage.

Subsequently, on May 3, the press service of Ukrainian President Petro Poroshenko reported that the confiscated funds of $1.1 billion were transferred to the accounts of the State Treasury.

The Financial Monitoring Service of Ukraine identified 42 non-resident companies close to former President Viktor Yanukovych and blocked $1.5 billion in accounts of 19 such companies in June 2014.

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