EU has found a way to use frozen Russian billions: who will receive compensation.

Belgian financial institution received permission to use frozen Russian assets

The financial institution Euroclear from Belgium has received permission to use part of the frozen Russian assets to pay compensation to Western investors who suffered losses due to Russia's actions. This was reported by Reuters, citing its sources.

According to the agency, Euroclear plans to transfer about 3 billion euros ($3.4 billion) to Western investors. This amount is part of approximately 10 billion euros owned by Russian individuals and legal entities that are held in this institution's accounts in Belgium.

The decision to use frozen Russian assets for compensating Western companies was a response to the confiscation of foreign investments carried out by Russia in 2023.

Reuters' sources report that Euroclear received official permission from the Belgian government for the payments in March 2025 and informed its clients about it on April 1. However, these payments will not affect the reserves of the Russian Central Bank amounting to over 200 billion euros, which remain frozen in the EU.

This step by the European Union is a new phase of economic pressure on Russia. In response, Russia filed about 100 lawsuits against Euroclear and imposed its own sanctions, confiscating 3 billion euros that belonged to this financial institution from accounts in a Russian depository.

Another European financial structure, Luxembourg Clearstream, is also preparing a similar compensation scheme, but on a smaller scale - amounting to several hundred million euros.

Earlier, the head of European diplomacy, Kaja Kallas, stated that European allies should use frozen Russian assets to help Ukraine. And on February 7, information appeared that Russia is preparing legislation on the confiscation of foreign assets in response to the freezing of its own.

President of Ukraine Volodymyr Zelensky also emphasized the need to confiscate Russian assets while such an opportunity exists.

Analysis:

The Russian-Ukrainian conflict continues to influence financial relations between Russia and the Western world. The use of frozen Russian assets to compensate Western investors is a response from the European Union to the confiscation of assets in 2023. This indicates the determination of Western countries to respond to Russia's actions. In response, Russia has issued its own sanctions against Euroclear and is preparing legislation on the confiscation of foreign assets. This conflict may have long-term consequences for the financial sector and economic stability of both sides.