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Euroclear to Transfer €2 Billion from Frozen Russian Assets to Ukraine

by Roman Cheplyk
Wednesday, February 5, 2025
1 MIN
Euroclear to Transfer €2 Billion from Frozen Russian Assets to Ukraine

International securities depository Euroclear plans to make a second payment of about €2 billion to the European Fund for Ukraine in March 2025, using interest income accrued from Russian assets frozen under international sanctions

This follows an earlier payment of €1.55 billion in July 2024.

Key Details

  • Second Payment Timeline:
    Scheduled for March 2025 and will cover the second half of 2024, amounting to approximately €2 billion.

  • First Payment:
    In July 2024, Euroclear transferred €1.55 billion to the same Ukrainian fund—representing interest generated in the first half of the year.

  • Additional Financial Obligations:
    Euroclear will also pay €1.7 billion in taxes to Belgium on profits derived from managing these frozen Russian assets.

  • Overall Earnings:
    The firm earned €6.9 billion from its management of sanctioned Russian assets in 2024.

Context

  1. Balance Sheet:
    As of late December 2024, Euroclear Bank reported €212 billion on its balance sheet, with €183 billion linked to frozen Russian assets. Worldwide, an estimated €260 billion in Russian assets remain frozen.

  2. EU Proposal:
    In March 2024, the European Commission suggested using 90% of the income from frozen Russian funds held in Europe to finance arms purchases for Ukraine—amounting to roughly €2.5–3 billion annually.

These measures underscore ongoing international efforts to redirect seized Russian financial assets toward supporting Ukraine, with Euroclear’s payments serving as a key component of that strategy.

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