Frozen russian assets brought Euroclear €4.4 billion in profit in 2023

In 2023, Euroclear, a Belgian financial company specializing in settlement of securities transactions and the storage and maintenance of securities assets, earned €4.4 billion from russian assets frozen by EU sanctions. 

As a reminder, in late January, EU ambassadors agreed to transfer the proceeds of frozen russian assets to Ukraine.

"However, the legislation will not apply retroactively to profits from 2023, but only to those that will be accumulated after the new rules come into force in the coming weeks. This means that Euroclear's €4.4 billion in 2023 revenues are unlikely to be set aside for Ukraine," The Financial Times reports.

According to the Belgian government, Euroclear has already paid €1.08 billion in regular corporate tax in Belgium for 2023, and this money has been used to support Ukrainians. The European Commission is preparing further legislation that will allow for the actual withdrawal of profits that will be deferred and then transferred to a fund for Ukraine.

"Euroclear is focused on minimizing the potential legal and operational risks that may arise for it and its clients as a result of any proposals of the European Commission," Euroclear said in a new report.

Source: The Financial Times, Euroclear