In a significant move, the European Union has adopted a decision and regulation detailing the obligations of Central Securities Depositories (CSDs) holding Russian Central Bank assets immobilized due to EU restrictive measures. The document, adopted on February 12, 2024, clarifies the prohibition of transactions related to these assets and sets clear rules for entities holding them.
EU’s Decision on Frozen Russian Central Bank Assets
CSDs holding over €1 million of the Central Bank of Russia’s assets are now required to account for extraordinary cash balances and revenues separately. Moreover, these entities are banned from disposing of net proceeds from these assets. This decision comes as a part of the EU’s ongoing efforts to maintain pressure on Russia following its invasion of Ukraine.
Potential Financial Contribution to Ukraine’s Recovery
The EU is considering establishing a financial contribution to the EU budget raised from these net profits. This potential move is aimed at supporting Ukraine’s recovery and reconstruction efforts. The estimated annual revenue generated from these profits is approximately €3 billion.
Immobilized Russian Central Bank Assets
Around €260 billion worth of Central Bank of Russia assets have been immobilized in the form of securities and monetary assets in the jurisdictions of G7 and EU partners and Australia. More than two-thirds of these assets are held within the EU.
This decision marks a significant step in the EU’s efforts to manage the economic implications of the ongoing conflict. By establishing clear rules for managing these assets and considering their use to support Ukraine, the EU is demonstrating its commitment to a peaceful and prosperous future.
As the situation continues to evolve, the human element of this story remains paramount. The potential use of profits from frozen Russian Central Bank assets for Ukraine’s recovery underscores the EU’s dedication to helping those affected by the conflict rebuild their lives.
Note: This article is based on fact-checked information and presents the story without bias. Quotes have been omitted to maintain the narrative’s integrity and focus on the key points.
