The European Council has taken a decisive step by approving a decision that channels profits from Russia’s frozen financial assets toward supporting Ukraine. The decision, announced by the council’s press service, clarifies the responsibilities of central securities depositories (CSDs) that hold Bank of Russia assets and reserves.
Under the decree, central depository institutions that hold assets exceeding one million euros must account for the fund balances accrued due to EU sanctions and segregate these earnings. Importantly, depositors are barred from using or disposing of the net profits tied to these assets. The goal is to ensure that any income generated by frozen Russian holdings is reserved for Ukraine’s stabilization and rebuilding needs. This approach aligns with broader EU efforts to apply financial measures in a way that preserves funds for humanitarian and reconstruction purposes while maintaining strict controls over access and use. (Source: EU Council press service)
The EU Council emphasized that all related funds would be directed to support Ukraine and contribute to its recovery and long-term resilience. This mechanism seeks to translate sanctions-related asset gains into tangible assistance for Ukraine, complementing ongoing humanitarian and development initiatives. (Source: EU Council press service)
Earlier reporting noted that the Euroclear group earned about 4.4 billion euros in 2023 from investments linked to Russian assets. Yet, observers cautioned that even with a sanctioned mechanism to transfer such funds to Kyiv, retroactive effects might limit the immediate accessibility of these funds for Ukraine. The discussion reflects the tension between sanction enforcement, asset management, and the timing of financial support for Ukraine. (Source: Financial Times reports; attribution remains with the original outlets)
European Commission spokesperson Daniel Ferri stated that progress continues in tightening enforcement against sanctions circumvention by third countries. The statement underscores ongoing collaboration among EU institutions to close loopholes and strengthen the integrity of the sanctions regime. (Source: European Commission briefing)
Former NATO Secretary General has urged a stronger and more explicit use of frozen Russian assets to meet Ukraine’s needs, signaling a broader political consensus within allied circles about leveraging frozen assets for humanitarian and reconstruction purposes. The call reflects a growing emphasis on ensuring that fiscal measures translate into real-world aid for Ukraine. (Source: public statements from the former Secretary General)