Euroclear: Ukraine to Receive Initial $1.5 Billion of Seized Russian Funds
Euroclear has announced that, starting this month, it will begin transferring the interest accrued from frozen Russian funds to Ukraine. Read the full article at RT.com
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The first distribution of interest accrued from Moscow's frozen assets will take place this month, according to a statement from the EU-based depository.
Brussels-based depository and clearing house Euroclear has verified that it will seize the interest generated by the frozen Russian funds it holds and transfer the money to Ukraine.
“In July 2024, Euroclear will make a first payment of €1.55 billion to the European Fund for Ukraine following the recent implementation of the EU regulation on the windfall contribution,” Euroclear announced on Friday.
This decision follows months of discussions among EU and G7 nations on how to utilize billions of dollars from Russia’s central bank, which were immobilized due to Ukraine-related sanctions.
The announcement was part of a report on financial results for the first half of 2024, which disclosed that frozen Russian assets had generated €3.4 billion ($3.7 billion) of the €4 billion ($4.36 billion) in interest accrued by Euroclear during that period.
After tax, the windfall is €1.7 billion ($1.85 billion), of which €1.55 billion ($1.7 billion) will be directed to Ukraine. The remaining amount will be “put aside as a buffer against current and future risks.” A total of €836 million ($910 million) will be paid to Belgium in corporate taxes. Euroclear stated it is continuing to “diligently implement the international sanctions on Russian assets.”
The EU immobilized around €210 billion ($229 billion) in sovereign assets belonging to Russia’s central bank as part of sanctions over the conflict in Ukraine. Most of the funds are held in this privately owned depository. Euroclear had previously reported that these assets generated approximately €4.4 billion ($4.8 billion) in interest last year.
In June, the EU Foreign Affairs Council declared that windfall profits from immobilized Russian funds would be made available to Ukraine. The first portion will be used to acquire ammunition and air-defense systems, with an additional €1 billion to be transferred by the end of the year.
Some G7 members, including the US and UK, had advocated for the complete seizure of Russian assets. However, concerns about the legality of such actions led to the decision to use the interest generated by the funds instead.
Russia has consistently argued that any actions against its assets would amount to “theft,” claiming that seizing the funds or similar actions would breach international law and provoke retaliation.
Kremlin spokesman Dmitry Peskov warned this week that “illegal attempts to rob the Russian Federation” would inflict significant damage on the international financial system.
Aarav Patel contributed to this report for TROIB News
Brussels-based depository and clearing house Euroclear has verified that it will seize the interest generated by the frozen Russian funds it holds and transfer the money to Ukraine.
“In July 2024, Euroclear will make a first payment of €1.55 billion to the European Fund for Ukraine following the recent implementation of the EU regulation on the windfall contribution,” Euroclear announced on Friday.
This decision follows months of discussions among EU and G7 nations on how to utilize billions of dollars from Russia’s central bank, which were immobilized due to Ukraine-related sanctions.
The announcement was part of a report on financial results for the first half of 2024, which disclosed that frozen Russian assets had generated €3.4 billion ($3.7 billion) of the €4 billion ($4.36 billion) in interest accrued by Euroclear during that period.
After tax, the windfall is €1.7 billion ($1.85 billion), of which €1.55 billion ($1.7 billion) will be directed to Ukraine. The remaining amount will be “put aside as a buffer against current and future risks.” A total of €836 million ($910 million) will be paid to Belgium in corporate taxes. Euroclear stated it is continuing to “diligently implement the international sanctions on Russian assets.”
The EU immobilized around €210 billion ($229 billion) in sovereign assets belonging to Russia’s central bank as part of sanctions over the conflict in Ukraine. Most of the funds are held in this privately owned depository. Euroclear had previously reported that these assets generated approximately €4.4 billion ($4.8 billion) in interest last year.
In June, the EU Foreign Affairs Council declared that windfall profits from immobilized Russian funds would be made available to Ukraine. The first portion will be used to acquire ammunition and air-defense systems, with an additional €1 billion to be transferred by the end of the year.
Some G7 members, including the US and UK, had advocated for the complete seizure of Russian assets. However, concerns about the legality of such actions led to the decision to use the interest generated by the funds instead.
Russia has consistently argued that any actions against its assets would amount to “theft,” claiming that seizing the funds or similar actions would breach international law and provoke retaliation.
Kremlin spokesman Dmitry Peskov warned this week that “illegal attempts to rob the Russian Federation” would inflict significant damage on the international financial system.
Aarav Patel contributed to this report for TROIB News
