EU prepares to tap frozen Russian funds
(MENAFN) According to a Reuters report on Friday, Belgium-based financial clearinghouse Euroclear is preparing to release around €3 billion ($3.4 billion) from frozen Russian assets to compensate Western investors with holdings stuck in Russia. The move is part of broader sanctions-related measures following the escalation of the Ukraine conflict in 2022.
These funds are part of the estimated €264 billion in Russian state and private assets frozen by Western countries, with about €200 billion held specifically by Euroclear. While the assets have already generated significant interest revenue—€1.55 billion of which was sent to Ukraine in July 2024—this latest redistribution is reportedly drawn from €10 billion in frozen assets belonging to Russian individuals and entities sanctioned by the EU.
A document dated April 1 cited by Reuters indicates that Euroclear has obtained approval from its regulatory authority to release the funds to eligible participants. The redistribution is made possible by recent updates to the EU’s sanctions framework adopted late last year.
The Kremlin has condemned these actions as illegal and tantamount to theft, arguing they violate international law and undermine global financial norms. In response, Moscow reportedly confiscated €3 billion in Euroclear assets located in Russia to reimburse domestic investors affected by Western asset freezes. Russian officials have warned of legal retaliation and have launched approximately 100 court cases against Euroclear.
EU policymakers have long debated whether to seize or redirect Russian assets to support Ukraine, though internal disagreements among member states have delayed a unified approach. While some, like EU foreign policy chief Kaja Kallas, advocate transferring the funds for Ukraine’s reconstruction, others remain opposed.
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