Jūrmala to Fund Ukrainian Aid Using Taxes from Sanctioned Properties

The Jūrmala City Council has approved a plan to allocate €100,000 to support the civilian population of Ukraine, funding the initiative through property tax revenues collected from individuals under sanctions. Rather than providing direct cash transfers, the city will utilize a service-payment model to ensure the aid reaches those in need through local infrastructure.

Turning Sanctions into Support

Since mid-2024, Jūrmala has collected approximately one million euros in taxes from 21 properties owned by sanctioned individuals. Local officials expect this amount to grow to 1.2 million euros by the end of the year. The decision to direct a portion of these funds toward Ukrainian civilians transforms the financial penalties imposed on sanctioned owners into tangible humanitarian assistance.

The Service-Payment Mechanism

To maintain transparency and utilize existing city resources, Jūrmala will not transfer funds directly to outside organizations. Instead, the local government will pay the bills for specific services provided to Ukrainian citizens. These funds are earmarked for:

• Medical services and rehabilitation.
• Cultural events.
• Charitable actions.

By paying medical and cultural institutions within Jūrmala that already function with Ukrainian citizens, the city ensures that the aid supports both the refugees and the local infrastructure providing the care.

Political Debate and Legal Requirements

The allocation has not been without controversy. Members of the opposition have questioned the scale of the assistance, noting that the current €100,000 allocation represents only about one-tenth of the total revenues generated by the sanctioned properties.

Jānis Lediņš, the chair of the council, addressed these concerns by noting that the distribution of funds can occur in stages. He stated that “the program can be continued after assessing its results,” suggesting that the current amount is a starting point that could be expanded. Lediņš also reminded the council that law requires at least 80% of such revenues to be used for this purpose.

The Role of “Ukrainas un Latvijas draudzība”

The push for this funding came from the organization “Ukrainas un Latvijas draudzība” (Friendship of Ukraine and Latvia). The group requested targeted support for Ukrainians who have fled their home country or are unable to return due to the ongoing war. Their advocacy helped shape the focus of the funds toward essential medical and rehabilitative services.

Key Takeaways: Jūrmala’s Aid Initiative

• Funding Source: Property taxes from 21 sanctioned properties.
• Initial Allocation: €100,000.
• Total Revenue: Approximately €1 million collected since mid-2024.
• Distribution Method: Payment for services (medical, cultural, rehab) rather than direct transfers.
• Legal Mandate: At least 80% of these specific tax revenues must be used for such purposes.

Looking Ahead

As Jūrmala continues to collect taxes from sanctioned assets, the city’s approach serves as a model for how local governments can repurpose penalty-based revenues for humanitarian goals. With the potential for the fund to grow toward the legally mandated 80% threshold, the city may significantly increase its capacity to provide medical and social support to the Ukrainian population in the coming months.