Europe has found Putin’s weak spot – financial reserves are under threat
Фото: spravdi.gov.ua
For the fourth year in a row, Russia is waging a full-scale war against Ukraine, and the international community is increasingly focused on frozen Russian assets. Europe holds over 260 billion euros in assets of the Russian Central Bank, which could become a real financial lever in the fight against the aggressor.
Brussels is already channeling some of the proceeds from these funds to support Ukraine, The Times reports . However, Kyiv is insisting on the full confiscation of the assets, which is causing political debate within the EU and among Western allies.
Most of Russia’s reserves are no longer just bonds, but mostly cash or securities investments. They are spread across several Western jurisdictions and managed by financial structures, including clearing houses.
The largest share — about 190 billion euros — is held by the Belgian company Euroclear. Another 20 billion euros are held by the French system Clearstream. These amounts significantly exceed the volume of frozen private assets of Russians, which amount to about 70 billion euros.
Theoretically, each country holding these funds could decide to confiscate them entirely, allowing a separate fund to be created to finance Ukraine’s needs. Analysts estimate that more aggressive management of these assets could significantly increase the amount of aid.
Belgium has already imposed a 25% tax on “windfall profits” generated from these assets, including interest and dividends. These funds are being transferred to the main European support fund for Ukraine. According to official data, three tranches of about 1.5 billion euros have already been disbursed.
As a reminder, the European Union has decided to send Ukraine the third tranche of excess profits received from the frozen assets of the Central Bank of Russia, in the amount of 1.6 billion euros . The funds will be used to financially support and meet the defense needs of the country, which is resisting Russian aggression.
As reported, Ukraine received 1 billion euros from the European Union from the proceeds of frozen Russian assets.
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