Eng
Esp

Copyright © 2024 Euromaidanpress.com

The work of Euromaidan Press is supported by the International Renaissance Foundation

When referencing our materials, please include an active hyperlink to the Euromaidan Press material and a maximum 500-character extract of the story. To reprint anything longer, written permission must be acquired from [email protected].

Privacy and Cookie Policies.

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

The EU decides to keep €5 billion in profits from frozen Russian assets in 2022-2023 instead of transferring it to Ukraine, as a buffer allowing payment for ongoing and potential Russian lawsuits, per Politico.
byYuri Zoria
28/03/2024
2 minute read
frozen Russian assets
Frozen Russian assets. Illustrative photo via RT.
Politico: EU retains €5 billion Russian frozen asset profits, blocks transfer to Ukraine

The European Union has decided to withhold €5 billion in profits generated in 2022 and 2023 from frozen Russian assets rather than transfer the funds to Ukraine, Politico reports. The substantial sum represents earnings from investing Russia’s central bank reserves, and other state assets immobilized across Europe through sanctions over Moscow’s invasion of Ukraine that started in February 2022.

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.

The European Commission proposed using 90% of frozen Russian assets in Europe, worth €2.5-€3 billion annually, for ammunition and weapons for Ukraine. However, only revenues after 15 February 2024, are eligible, while earlier profits will stay with Euroclear.

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:

You could close this page. Or you could join our community and help us produce more materials like this.  We keep our reporting open and accessible to everyone because we believe in the power of free information. This is why our small, cost-effective team depends on the support of readers like you to bring deliver timely news, quality analysis, and on-the-ground reports about Russia's war against Ukraine and Ukraine's struggle to build a democratic society. A little bit goes a long way: for as little as the cost of one cup of coffee a month, you can help build bridges between Ukraine and the rest of the world, plus become a co-creator and vote for topics we should cover next. Become a patron or see other ways to support. Become a Patron!

To suggest a correction or clarification, write to us here

You can also highlight the text and press Ctrl + Enter

Please leave your suggestions or corrections here



    Euromaidan Press

    We are an independent media outlet that relies solely on advertising revenue to sustain itself. We do not endorse or promote any products or services for financial gain. Therefore, we kindly ask for your support by disabling your ad blocker. Your assistance helps us continue providing quality content. Thank you!

    Related Posts