Euroclear - a clearing agency headquartered in Brussels, Belgium - confirmed that it will confiscate profits generated from frozen Russian assets held by the organization and transfer them to Ukraine.
"In July 2024, Euroclear will make the first payment of 1.55 billion euros to the European Fund for Ukraine after implementing the recent EU regulation regarding contingent contributions" - Euroclear said. .
The transfer of profits from frozen Russian assets to Ukraine comes after months of discussions between EU and G7 countries. How to use billions of dollars belonging to the Russian central bank that are being blocked by the West within the framework of sanctions due to the conflict in Ukraine has been discussed for a long time.
Euroclear's first-half 2024 financial results report revealed that Russia's frozen assets generated 3.4 billion euros ($3.7 billion) in profits. After taxes, the proceeds amount to 1.7 billion euros ($1.85 billion), of which 1.55 billion euros ($1.7 billion) will be sent to Ukraine. The rest will be shelved as a safety measure against current and future risks."
In addition, 836 million euros ($910 million) will be paid to Belgium in corporate tax. Euroclear also confirmed that it is continuing to implement international sanctions against Russian assets.
The EU has frozen about 210 billion euros ($229 billion) in assets owned by Russia's central bank as part of sanctions imposed after the conflict in Ukraine. Previously, the Euroclear clearing agency reported that frozen Russian assets generated about 4.4 billion euros ($4.8 billion) in profits last year.
