Europe to Compensate Western Investors Using Frozen Russian Assets
In a significant move that intensifies the economic standoff between Russia and the West, Euroclear plans to redistribute €3 billion ($3.4 billion) in frozen Russian funds to compensate Western investors whose assets were seized by Moscow, The Gaze reports, citing Reuters.
The funds, part of approximately €10 billion in cash belonging to Russian entities and individuals sanctioned by the European Union following Russia’s 2022 invasion of Ukraine, are held by Euroclear, a Belgian financial institution that holds the majority of frozen Russian assets in Europe.
“We received authorisation from our competent authority, to unfreeze the compensation amounts and make these available to our participants,” Euroclear told clients in an April 1 briefing document.
The planned disbursement represents a new level of reprisal, marking one of Europe’s boldest financial countermeasures since the war began. The decision follows Russia’s seizure of billions of euros in investor cash held domestically — a retaliatory act after Western sanctions immobilized Russian wealth abroad.
Reuters reported that Euroclear obtained clearance from Belgian authorities in March and has since come under pressure from international investors demanding the release of the funds. The identities of the specific beneficiaries or the Russian asset holders remain undisclosed.
The redistributed funds will not affect the over €200 billion in Russian central bank reserves that remain frozen in the EU. However, the move reduces the broader pool of Russian assets held at Euroclear, which includes cash, shares, and bonds — holdings that some hoped could be directed toward Ukraine’s reconstruction.
Still, the decision has drawn criticism. “To seize Russian assets and give them to Western investors would be morally reprehensible,” said Jacob Kirkegaard, a sanctions expert with the Peterson Institute for International Economics.
Russia, whose economy continues to be strained under a fourth year of sweeping international sanctions, has previously warned of retaliation. In early 2025, Moscow passed new legislation to allow for the confiscation of Western investor assets held in Russia — and has already seized €3 billion of Euroclear cash located at a Russian depository, according to sources.
Euroclear currently holds over €180 billion of sanctioned Russian wealth — making it the single largest custodian of such assets in the EU. The firm has faced roughly 100 legal challenges from Russia, although the current status of those cases is unknown.
Read more on The Gaze: "No More Waiting": Davos Calls On the West to Transfer Russian Assets to Ukraine