Euroclear earns €1.7bn by investing in blocked Russian assets
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In the first half of 2023, the Belgian depository Euroclear earned €1.7 billion from investing in Russia’s frozen assets, according to report companies. In total, during the same period, the financial group received an operating profit of €3.1 billion.
“Blocked coupon payments and repayment of debts to organizations subject to sanctions lead to the accumulation of funds on the balance sheet of Euroclear Bank. As of the end of June 2023, Euroclear Bank’s balance sheet increased by 47 billion euros year-on-year to a total of 150 billion euros.
At the same time, from the second half of 2023, the depositary expects interest income growth to slow down, “as blocked payments and repayments accumulate more slowly, and economists’ consensus forecasts suggest more stable interest rates.”
Euroclear also draws attention to the fact that the European Commission is now considering the possibility of using income from investing frozen Russian assets to finance the restoration of Ukraine.
In 2022 Euroclear and Clearstream blocked accounts of the National Settlement Depository, due to which some of the securities of Russian investors were frozen. The Bank of Russia estimated the volume of blocked Russian assets on NSD’s accounts with foreign depositories at 6 trillion rubles.
More details – in the material “Kommersant” “Mediocre defrosting.”
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