Euroclear to Seize and Redistribute €3 Billion in Russian Funds

BRUSSELS: Euroclear intends to take control of and reallocate approximately 3 billion euros ($3.4 billion) of Russian assets. These funds are currently immobilized at the Belgian clearinghouse following Moscow’s appropriation of investor capital within Russia, according to documentation and sources familiar with the situation.

These funds will serve as compensation for Western investors whose assets were seized by Moscow in recent months. This action intensifies the ongoing efforts by both parties to recover billions impacted by the conflict in Ukraine, according to three individuals.

Euroclear will redistribute 3 billion euros from a total of 10 billion euros in cash. This cash belongs to Russian entities and individuals who have been subjected to European Union sanctions since Moscow’s invasion of Ukraine in 2022, according to two sources.

This action signifies a new level of retaliation by Europe. The European Union amended its sanctions regime late last year. This amendment permits disbursements to Western investors under these specific circumstances.

Previously, the West has facilitated loans and payments to Ukraine using the interest accrued on frozen Russian assets. Russian President Vladimir Putin has condemned these actions as theft.

The planned payout by Belgium was prompted by Russian government orders issued last year. These orders confiscated billions of dollars from Western investors. Euroclear has faced considerable pressure from international investors to release these funds. It remains unclear which investors will specifically benefit from the disbursement.

Euroclear received approval from Belgium, its primary legal authority, in March to proceed with the payout, according to sources.

Euroclear informed its clients about the forthcoming payments in a briefing document dated April 1.