Brussels, 12 February 2024 (TDI): The Council of the European Union has made a significant decision regarding assets belonging to the Russian Central Bank.
The EU froze these assets in response to Russia’s invasion of Ukraine, and the Council, along with its allies, condemned and imposed sanctions accordingly.
The Council’s decision focuses on Central Securities Depositories (CSDs), institutions responsible for managing securities like stocks and bonds within EU member states. They handle the immobilized assets of the CBR.
The decision clarifies that transactions involving these immobilized assets are strictly prohibited. It also establishes clear rules for how CSDs should handle any revenue generated from holding these assets.
According to the decision, CSDs holding more than €1 million worth of Russian Central Bank assets must separate any additional money they earn. They must keep this money separate from their other funds.
Additionally, they cannot use or distribute the profits made from these assets. However, recognizing the risks and costs, CSDs can request permission to use some of the profits to meet certain financial requirements, such as having enough capital to operate safely.
The decision also opens the possibility for the EU to contribute financially to Ukraine’s recovery efforts in the future. This contribution would come from the profits made by CSDs holding Russian Central Bank assets, directed through the EU budget to the Ukraine Facility, a fund set up to support Ukraine’s reconstruction.
Background
In December 2023, G7 leaders emphasized the urgent need to use the significant revenues generated from immobilized Russian assets to assist Ukraine, reflecting their commitment to stand by Ukraine during these challenging times.
Additionally, the European Council strongly condemned Russia’s aggressive war against Ukraine, highlighting that Russia’s actions violate international law. They affirmed unwavering support for Ukraine’s sovereignty and territorial integrity.
The European Council stressed the importance of finding ways to use the profits made from immobilized Russian assets to help Ukraine recover and rebuild. It noted that a significant portion of the Russian Central Bank assets, totaling around €260 billion are immobilised within the EU and other allied jurisdictions.
