Netherlands confirms freezing of €97.2 million of russian assets

“As of July 1, 2024, the total amount of private frozen assets in the Netherlands amounted to €97.2 million. This amount is significantly lower than the 660 million euros reported to the House of Representatives in January as the total amount of frozen funds after the first sanctions were imposed over russia's invasion of Ukraine,” the commentary said.

The Dutch Foreign Ministry also emphasized that this issue had already been reported to the Dutch Parliament on October 4, 2024.

Thus, in January 2024, the Dutch parliament announced that the total amount of frozen russian assets would be 660 million euros, but by July 1, 2024, only 97.2 million had been blocked, and the rest was no longer subject to freezing.

“A significant amount of frozen funds were released and no longer subject to freezing. Due to the confidentiality of the information, the parties involved are anonymized,” the Dutch Foreign Ministry said.

They added that a significant part of this amount belongs to two companies. 230 million euros of Company №1, whose name is not disclosed due to confidentiality, were not subject to freezing because the company no longer had ties to the sanctioned russian owners.

“The sanctioned owners are now at a sufficient distance from Company №1 and no longer have access to the company's assets. Thus, the freeze requirement is lifted,” the Dutch Ministry of Foreign Affairs explained.

Also, in May 2024, the Netherlands Investment Assessment Office (BTI) recognized that Company №1 and some related companies are not subject to the sanctions measures defined in the European sanctions regime against russia.

“Thus, the freezing requirement did not apply to more than these 230 million euros,” the Dutch Foreign Ministry added.

It is worth noting that the Netherlands Investment Assessment Bureau is a body that reviews investments and assesses their compliance with the laws of the country, in particular with regard to sanctions and restrictions that may be applied to certain individuals or companies. In the case of sanctions, the BTI determines whether certain investments or entities are subject to European Union sanctions, especially with respect to russia and other sanctioned countries.

As for Company №2, the unfreezing of funds was due to exceptions for outstanding payments and the removal of sanctioned owners.

“In March, July and August 2022, the bank reported freezes related to Company №2. These freezes concerned funds in the amount of about EUR 200 million. Company №2 has the same sanctioned ultimate beneficial owners as Company №1. In August 2022, the Minister of Finance authorized the release of these frozen funds to pay interest and repay debts to unauthorized banks. The Minister of Finance has the right to grant exemptions for financial transactions or for the release of frozen funds if the European sanctions regime allows it. In particular, permission may be granted to release frozen funds to pay off “old debts”, provided that these funds do not reach sanctioned persons,” the Dutch Ministry of Foreign Affairs explained.

In June 2024, BTI also confirmed that Company №2 was no longer subject to EU sanctions.

“This was due to the restructuring of the aforementioned Company №1, as a result of which Company №2 became a wholly owned subsidiary of the previously mentioned Company №1 and thus was put at a sufficient distance from the sanctioned owners. Therefore, the freezing requirement no longer applied to these funds,” the Dutch Foreign Ministry added.

Source: Ukrinform