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Euroclear, a European depository and financial services company for securities settlement, will transfer €3 billion of frozen Russian funds to Western investors who worked in Russia and whose funds were confiscated by Moscow last year.
Source: Reuters, citing sources
Details: Reuters noted that Euroclear plans to withdraw and redistribute the Russian funds frozen within its system.
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These €3 billion are part of the €10 billion belonging to Russian companies and individuals that have been sanctioned by Brussels.
Reuters reported that EU authorities have gained the opportunity to redistribute these funds after the sanctions regime was amended in 2024. The competent authority has authorised the consideration of compensation amounts and their allocation.
Reuters reports that this step marks a new level of European measures. At the end of last year, the European Union modified its sanctions regime to allow the payment of frozen Russian funds to Western investors under such circumstances.
Previously, the West had intended to use proceeds from the frozen Russian assets to provide loans and payments to Ukraine. Russian leader Vladimir Putin labelled this as “theft”.
The planned payments are said to be a direct response to the Russian government’s order to confiscate billions from Western investors.
The EU froze hundreds of billions of Russian assets, including central bank reserves, following Russia’s invasion of Ukraine in February 2022. This unprecedented move has become the EU’s most significant penalty against Russia.
Euroclear, a Belgium-based financial group specialising in securities, was transferred to a subsidiary, Euroclear Bank, at the end of 2000. It currently holds most of the Russian capital seized due to international sanctions.
According to Reuters, Euroclear holds more than €180 billion, making it the primary holder of sanctioned Russian capital in Europe. The company is facing pressure from investors seeking to recover these funds, with sources telling Reuters that approximately a hundred lawsuits have been filed against Euroclear.
Moscow warned last year of potential retaliation if its frozen assets were seized and used to benefit Ukraine. Earlier this year, Russia amended its law to enable such retaliation.
Reuters reports that Moscow has recently seized €3 billion held by Euroclear in a Russian depository to compensate Russian investors impacted by…
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