Euroclear to channel €1.55 billion from blocked Russian assets to Ukraine
Euroclear, the international securities depository, has announced it will contribute approximately €1.55 billion to the European fund for Ukraine from investments of blocked Russian assets by July this year.
According to Euroclear's report released on Friday,July 19th, for the first half of 2024, Euroclear realised €3.4 billion in interest income from investing these frozen Russian assets, compared to roughly €4.4 billion in 2023 and €821 million in 2022.
Euroclear's overall interest income for January to June this year totalled €4 billion. The company will also pay taxes amounting to €836 million on the income generated from these Russian assets.
Consequently, the net profit attributable to the frozen assets of Russia's Central Bank for the first half of the year stands at €760 million.
In late May, the European Council approved the transfer of proceeds from taxable windfall profits derived from frozen Russian assets to Ukraine. The anticipated annual receipts amount to approximately €2.5-3 billion, with 90% of these funds earmarked for military support to bolster Ukraine's defence endeavors, while the remaining 10% will be allocated to the reconstruction and rehabilitation of the nation.