Italy Freezes Assets of Russia And Belarus Worth Over €2bn

Since the beginning of Russia's full-scale invasion of Ukraine, the Italian government has blocked Russian and Belarusian assets under sanctions worth more than €2.3 billion.

This was reported by La Repubblica.

These are yachts, luxury cars and other liquid assets belonging to the so-called "war sponsors" from Russia and Belarus.

In his report, Enzo Serata, Director of the Financial Intelligence Unit (UIF) of the Bank of Italy, notes that the €2 billion figure was updated at the end of June, when another €330 million was frozen. Assets worth this amount are associated with 80 individuals subject to European sanctions.

In general, since February 2022, Italy has been working intensively to identify and seize assets belonging to citizens of Russia and Belarus. First of all, it was about numerous bank accounts, luxury villas, yachts and cars belonging to people who sponsored Russia's war of aggression in Ukraine.

Prior to Russia's full-scale invasion of Ukraine, Italy was one of the countries where a large number of wealthy and influential Russians traditionally kept their money, buying luxury real estate and luxury goods.

Last month, the FT reported that officials from various EU member states were exploring options for transferring to Ukraine the interest earned from the storage of frozen Russian assets in the European financial system. The amount in question was about €200 billion, which is being held at the Euroclear centre.

The frozen Russian assets continue to operate and generate income, as Euroclear reinvests the funds. Accordingly, it is the profits earned by the company from reinvesting Russian money that EU officials plan to transfer to Ukraine.

Most European leaders agree that the money that will be received through reinvestment should be spent on the post-war reconstruction of Ukraine. At the end of last month, the Belgian Prime Minister, Alexander De Croo, said that the amount of revenues could be around €3.27 billion a year.

In May of this year, the European Bank for Reconstruction and Development (EBRD) published a report stating that Ukraine will need approximately 50 billion in external investment annually over the next 5 years to fully restore the country to its pre-war level.