The European Union will keep 5 billion euros of the Russian Federation’s frozen assets instead of transferring them to Ukraine to cover the costs of legal proceedings, Politico newspaper reported, citing the document at hand. “Incomes from the frozen assets of the Russian Federation in 2022 and 2023 are separated from “ordinary” revenues. We do not distribute these earnings among the shareholders and keep them until we receive further instructions,” the depository told the newspaper.
The specified amount is “intended to cover the costs, risks, and damages incurred by the depository in connection with the conflict in Ukraine,” according to the European Commission document quoted by the newspaper. In addition, it states that Euroclear may retain 3% of revenue indefinitely “to ensure the efficiency of its work.” As for future earnings, it can use 10% of the received amount as an additional guarantee. The possible risks do not materialize. In that case, the platform will give that 10% to the EU but will keep 5 billion euros, said an anonymous European official in a comment given to the periodical.
As of February 2024, Russian companies have filed 94 lawsuits against Euroclear, demanding the return of blocked funds.
