EU moves to confiscate €3bn in frozen Russian assets
Reuters reports, citing sources familiar with the decision, that the European Union intends to confiscate around €3 billion (approximately £2.6 billion) of frozen funds belonging to Russian companies and private individuals to compensate for losses suffered by its investors in Russia.
According to the agency's sources, the confiscated money will be distributed among Western companies and citizens who experienced a similar confiscation of billions of euros held in Russia last year.
The frozen assets of the Russian central bank in Europe - approximately €200 billion (around £174 billion) - will remain untouched. Instead, European authorities plan to use a portion of the €10 billion (about £8.7 billion) in cash and securities of Russian companies and citizens sanctioned after 2022.
Will the EU seize Russian funds?
These assets have been frozen in Euroclear's deposit. The Belgian authorities, under whose jurisdiction this company falls, approved the use of Russian funds in March, and in April, Euroclear itself announced payouts, Reuters sources said. The agency emphasises that who will receive them and whose money will be confiscated remains unclear.
The Kremlin 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 for taking over foreigners' assets in response to the "unfriendly actions" of the US and other countries.
Russia does not remain indebted to the EU
In recent months, according to two Reuters sources, Moscow confiscated €3 billion (about £2.6 billion) of Euroclear's assets in a Russian deposit. These funds were allocated to compensate Russian investors harmed by Western sanctions.
Two Reuters interviewees said a similar seizure of Russian money in Europe is practically equivalent to an exchange of assets. According to the agency's sources, the EU plans to additionally confiscate several hundred million euros (approximately several hundred million pounds) from assets held in another deposit, Clearstream.
