Euroclear considers using frozen Russian asset income to aid Ukraine
Euroclear, the Belgian depository managing most of Russia's frozen assets in Western countries, will soon decide how to use income from these assets to support Ukraine, according to Euroclear Executive Director Valérie Urbain, as reported by L'Echo on May 7.
"Talks with the European Commission about this exceptional 'windfall contribution' are in advanced stages," Urbain stated. "The contribution is expected to range from 87% to 89% of the interest generated by Russian assets, after taxes."
Annual income from Russia's frozen assets is projected to be $2-3 billion, depending on interest rate fluctuations.
Urbain emphasized that while this decision will impact Euroclear itself, it could also disrupt broader financial markets. Euroclear faces over 100 legal claims from Russian entities trying to recover their frozen funds.
According to L'Echo, Euroclear holds more than $200 billion of frozen Russian assets in its accounts.
Struggle over Russian assets
The U.S. Senate Foreign Relations Committee approved a bill that would help to confiscate Russian assets and transfer them to Ukraine to rebuild its infrastructure on Jan. 24.
Prior to that, U.S. Secretary of State Antony Blinken said that his country, together with EU, was considering legal authority to direct $300 billion in Russian assets to Ukraine's reconstruction and other needs.
Ukrainian President Volodymyr Zelenskyy said that outlines of decisions necessary to transfer frozen Russian assets to Ukraine are already being prepared.
Bill No. 8038 on transfer of frozen Russian assets to Ukraine received the required number of votes to be passed by the U.S. House of Representatives on April 20.
Ukraine may receive almost eight billion dollars as part of this procedure. This bill must now be approved by the U.S. Senate.
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