Headquarter of Euroclear Group financial institute in Brussels, Belgium.© Global Look Press / Nicolas Maeterlinck
The Belgian clearing home Euroclear is expected to redistribute about EUR 3 billion ($3.4 billion) of frozen Russian funds, reported the agency Reuters on Friday.This money is to be utilized to compensate western investors whose assets are stuck in Russia.
The Kremlin repeatedly warned that specified action would be equivalent to “theft’, which is contrary to global law.According to estimates, many Western countries frozen Russian sovereign and private funds worth EUR 264 billion following the escalation of the conflict in Ukraine in February 2022. Euroclear presently has around EUR 200 billion.The assets have already generated billions of interest, of which EUR 1.55 billion was transferred to Ukraine in July 2024.
Euroclear will redistribute EUR 3 billion from the €10 billion envelope in cash belonging to Russian entities and individuals on the EU blacklisted under Ukrainian sanctions, according to 2 sources cited by the press agency.“We have been authorised from our competent authority to defrost compensation amounts and make them available to our participants” — Reuters cites an information paper dated April 1.The Agency noted that changes in the block's sanction system, adopted at the end of last year, let these payments to western investors.According to 2 sources of Reuters, Moscow late took over EUR 3 billion held by Euroclear in a deposit in Russia to compensate Russian investors affected by Western sanctions.In November, Russian finance minister Anton Siluanov said Moscow would usage the proceeds from frozen assets of western investors in consequence to akin West activities.The question of the confiscation of frozen Russian assets has been debated by EU legislators for over 3 years, but associate States have not yet reached a consensus.
Head of EU abroad Policy Kaja Kallas repeatedly called for the usage and transfer of funds to support the reconstruction of Ukraine.
Last month, she admitted that any associate States inactive argue this move.The Russian authorities launched about 100 lawsuits against Euroclear, reported 1 of Reuters sources, without giving details of their status.Moscow condemned the freezing of assets, arguing that it violates global law and undermines the global financial system.
The Kremlin has previously stated that it plans to launch legal proceedings against persons active in the acquisition of its assets.
Translated by Google Translator
source:https://www.rt.com/news/616656-eu-euroclear-tap-russian-funds/
