Politico: EU retains €5 billion Russian frozen asset profits, blocks transfer to Ukraine

Euroclear, the Brussels-based securities depository holding the vast majority of these frozen Russian assets valued at €192 billion, confirmed to Politico that the €5 billion in profits "are separate from 'business as usual' earnings." The clearinghouse stated it is retaining those profits "until further guidance" instead of distributing them to shareholders.

According to a draft EU proposal, "seen by Politico but not yet made public," the investment income from 2022 and 2023 will be kept as a buffer to cover "expenses, risks, and losses" Euroclear could face from ongoing and potential lawsuits filed by Russia over its frozen assets. An anonymous Belgian official told Politico that Moscow has already launched 94 such legal challenges in Russia demanding repayment.

However, Ukrainian officials like Justice Minister Denys Maliuska counterargued that €5 billion is an "exorbitant amount" simply for litigation provisions. He noted to Politico that Euroclear itself reported only €34 million in direct income losses from the impacts of Russia's war.

Read also:

• Bloomberg: US proposes $50 billion bond to support Ukraine with frozen Russian assets
• Austrian chancellor opposes using profits from frozen Russian assets to finance weapons for Ukraine
• Borrell to submit plan for using frozen Russian asset revenues for Ukraine weapons
• EU aims to fast-track up to €3 billion for Ukraine from frozen Russian assets this July
• Swiss lawmakers back using Russian assets for Ukraine reparations
• Bloomberg: Biden calls for G7 action to tap Russian frozen assets for Ukraine