According to information from Reuters, Belgium is preparing to make a historic move in the process of confiscating frozen Russian assets, which could significantly impact the course of international sanctions regimes and the European Union’s financial policy towards Moscow
As part of this initiative, the Belgian financial company Euroclear plans to seize and redistribute approximately three billion euros from the total pool of frozen Russian funds currently under sanctions. This decision comes amid the ongoing conflict between the West and Russia, notably following Moscow’s large-scale invasion of Ukraine in February 2022, which led to extensive sanctions restrictions and asset confiscations of Russian investors in Europe. Sources familiar with the situation state that these funds will be used to compensate Western investors who lost their money as a result of the confiscation of Russian assets. They emphasize that Euroclear intends to redistribute 3 billion euros out of the approximately 10 billion euros — the amount of cash held by Russian legal and physical persons subject to EU sanctions. Currently, questions are being considered about who exactly will receive these funds, as no final details about the distribution have been publicly announced. However, it is known that the decision to potentially unfreeze these amounts was made in March based on relevant orders from Belgian authorities. Furthermore, in light of these events, Euroclear has already informed its clients of upcoming payments, sending an informational document at the end of last week. In its message, the company confirmed it has received approval from Belgian regulators to unfreeze and transfer the funds. At the same time, Reuters highlights that the details regarding the identity of the Russian asset owners whose funds are planned for confiscation remain uncertain, as does the situation surrounding possible legal consequences. It is important to note that this step increases pressure from the West on Russia. According to some sources, this sum does not touch the more than 200 billion euros in reserves of the Russian Central Bank stored in the EU, which remain frozen. However, these assets—including cash, stocks, and bonds, most of which are held through Euroclear—represent a significant leverage and could serve as an economic and political tool to block Russian actions and seek diplomatic solutions to the conflict. For Moscow, this move could trigger a new escalation, as Russia has already warned that any confiscation of its assets for the purpose of further use to fund Ukraine will be considered a “theft.” Russia has amended its domestic legislation to enable it to take legal measures against frozen assets of other states in response. It is also worth noting that in this complex context, lengthy debates are ongoing within the European Union regarding the legality and appropriateness of confiscating Russian assets to transfer them to Ukraine. Many high-level countries, including France, Germany, Italy, and Spain, are skeptical of such measures, fearing they could negatively impact the investment climate and the EU’s international image. At the same time, experts and analysts point out that the confiscation of Russian assets and their redistribution have substantial political and economic implications: on one hand, these actions could be an important instrument to uphold sanctions and exert pressure on the Kremlin; on the other hand, they raise serious legal questions regarding ownership and legitimacy. It is noted that Euroclear holds the largest share of sanctioned Russian assets in Europe—over 180 billion euros. Meanwhile, Russia emphasizes that returning these assets is a priority for them and has already initiated around a hundred legal suits against the activities of Euroclear and other financial structures in Europe. The political confrontation is also intensifying. Moscow has unequivocally stated that any measures involving the confiscation of its assets and their use for Ukraine could provoke an appropriate response from it. At the same time, high-level discussions are ongoing within the EU on the future and purpose of such confiscations. Larger countries like France, Germany, Italy, and Spain warn that implementing more radical measures could lead to a loss of investment attractiveness and political balance in diplomatic negotiations. Conversely, proponents of such measures argue that these actions are justified given the scale of Russian aggression and the efforts of Western countries to support Ukraine, earning broad international backing. Thus, Europe’s future steps regarding frozen Russian assets remain closely monitored and are subject to diverse opinions among experts, politicians, and financial analysts. It is crucial to note that the issue of confiscating and redistributing Russian assets has become one of the most debated and sensitive topics in contemporary international politics, and its resolution has the potential to reshape rules governing the global financial system and diplomacy in the coming years.