Euroclear will transfer €1.55 billion of proceeds from frozen russian assets to a fund for Ukraine in July

In July 2024, the international depository Euroclear will make the first contribution of approximately €1.55 billion to the European fund for Ukraine.

In the first half of 2024, Euroclear received €3.4 billion in interest income from the investment of blocked russian assets.

In 2023, these revenues amounted to about €4.4 billion, and in 2022 - €821 million.

Euroclear's total interest income in January-June this year amounted to €4 billion.

The company will also pay taxes on income received from russian assets in January-June in the amount of €836 million.

As a result, Euroclear's net profit attributable to the frozen assets of the Central Bank of russia amounted to €760 million in the first half of the year.

Euroclear's balance sheet as of the end of June 2024 amounted to €207 billion, of which €173 billion were attributable to russian assets under sanctions.

As a reminder, on February 15, 2024, the EU Council adopted a Regulation requiring central securities depositories that hold reserves and assets of the Bank of russia to apply special rules to cash balances accumulated due to restrictive measures. These CSDs, including Euroclear, must account for and manage such extraordinary cash balances separately from other activities, must retain net income separately, and must not dispose of the net income (e.g., as dividends to shareholders).

Euroclear's underlying net profit, which excludes income from the blocked russian assets, increased by 7% year-on-year in January-June to €602 million.

Underlying operating income increased by 5% to €1.45 billion.

In particular, revenues from core activities amounted to €865 million compared to €838 million a year earlier, while interest, banking and other income increased to €586 million from €539 million.

Source: Euroclear report