EU set to seize 3 billion euros from Russian assets for compensation
The European Union plans to confiscate approximately 3 billion euros (around 3.4 billion US dollars) in frozen funds belonging to Russian companies and private individuals. This move aims to compensate for losses suffered by EU investors in Russia, according to a report from Reuters, which cites sources familiar with the decision.
These sources indicate that the confiscated money will be distributed among Western companies and citizens who experienced a similar confiscation of funds in Russia last year.
The frozen assets of the Russian central bank in Europe, totaling about 200 billion euros (approximately 226 billion US dollars), will remain untouched. Instead, European authorities plan to use a portion of 10 billion euros (about 11.3 billion US dollars) in cash and securities from Russian companies and citizens who were sanctioned after 2022.
Will the EU seize Russian funds?
These are assets that have been frozen in Euroclear's deposit. The Belgian authorities, under whose jurisdiction Euroclear falls, approved the use of these Russian funds in March. In April, Euroclear itself announced payouts, according to Reuters sources. It remains unclear who will receive these funds and whose money will be confiscated, the agency emphasizes.
The Kremlin has demanded the return of frozen assets of its investors in the EU. Russian courts have reviewed over 100 lawsuits against Euroclear, one of Reuters's sources reported. In February, the Russian government developed a mechanism to seize foreign assets in response to "unfriendly actions" by the USA and other countries.
Russia retaliates against the EU
In recent months, according to two Reuters sources, Moscow confiscated 3 billion euros (about 3.4 billion US dollars) that Euroclear held in a Russian deposit. These funds were used to compensate Russian investors harmed by Western sanctions.
This move by Europe to seize Russian money is akin to an exchange of assets, according to two Reuters interviewees. The agency's sources also mention that the EU plans to confiscate several hundred million euros from assets held in another deposit, Clearstream.
