Brussels, Belgium – The European Commission announced on Wednesday that the European Union will receive €1.4 billion ($1.6 billion) in interest and profits generated by frozen Russian assets. This is intended to support and rebuild Ukraine in the face of the ongoing war. According to Reuters, the decision responds to the conflict.
New financial transfers from the cash reserves of the Central Bank of Russia
The European Commission explained that these substantial funds were officially transferred to the EU treasury on August 3rd. These cash returns are generated from interest on liquid assets. Furthermore, this is a key component of the Russian central bank’s asset portfolio that the EU froze following the outbreak of war in Ukraine.
In response to this decision, European Commission President Ursula von der Leyen stated in an official statement: “Russia must pay for the widespread destruction it causes. We are using the proceeds from frozen Russian assets to ensure that it does so and to support the path to recovery.”
Details of frozen assets and the role of the Belgian Euroclear Chamber
The total value of frozen Russian assets worldwide is estimated at around $300 billion, with the largest share, exceeding €210 billion, concentrated within EU member states. Moreover, the largest portion of these funds is specifically held within the well-known Belgian financial clearinghouse, Euroclear.
This measure is part of the European Union’s ongoing efforts to find sustainable and innovative legal mechanisms to utilize the financial proceeds from frozen Russian assets. The EU also aims to channel these funds into urgent military, humanitarian, and economic support packages for Kyiv. In addition, this step sends a clear message from Western allies that Moscow is fully accountable for the material losses and extensive damage inflicted on Ukrainian infrastructure throughout the years of conflict.
