EU will not transfer $5.4 billion in profits from frozen Russian assets to Ukraine

The EU will not give Ukraine 5 billion euros
The EU will not give Ukraine 5 billion euros

The European Union has decided not to transfer EUR 5 billion ($5.4 billion) in investment profits from frozen Russian assets, Politico reported on March 27.

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According to a statement by Euroclear—the EU securities depository that oversees Russia’s sovereign financial assets frozen after the invasion of Ukraine—the funds will be set aside as a precautionary measure against potential lawsuits from Moscow.

“We do not distribute these profits to shareholders and retain them until further guidance is provided,” Euroclear said.

The money will be used to cover “the expenses, risks and losses incurred by central securities depositories … due to the war in Ukraine,” according to the report.

As of February 2024, Russian organizations have filed 94 lawsuits against Euroclear, demanding the return of the funds.

Read also: British PM urges seizure of frozen Russian assets

Meanwhile, Ukraine's Justice Minister, Denys Maliuska, disagrees with Euroclear’s position.

“I never heard that €5 billion is a buffer for Euroclear,” he told the journalists.

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“It’s too big an amount of money to be a buffer.”

Ukrainian officials have also noted that Euroclear's direct damages from the war in Ukraine amount to only €34 million.

At the same time, legal experts suggested that the retroactive confiscation of Russian profits could become a "legal minefield" for the EU.

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Read the original article on The New Voice of Ukraine