European investment firms stand to receive approximately €3.4 billion in formerly restricted Russian assets after Euroclear's action.
In response to the €3 billion seized from Russian NSD accounts to compensate Russian investors' losses, Euroclear is poised to seize and redistribute over €3 billion in frozen Russian assets to Western investors affected by "counter-sanction mechanisms and legal proceedings in Russia," as per Reuters.
Interestingly, the European Court previously dismissed NSD's lawsuit challenging the legitimacy of sanctions imposed in June 2022. At that time, an estimated €70 billion was held in NSD accounts at Belgian depositary Euroclear.
The assets being unfrozen consist of cash, shares, and bonds from Russian companies and individuals subject to EU sanctions, totaling €10 billion. Importantly, this redistribution will not impact the €200 billion in Russian central bank reserves frozen in the EU.
Deputy Governor of the Central Bank of Russia, Philip Gabunia, revealed in the summer of 2022 that the freezing of assets affected over 5 million private Russian investors, with 6 trillion rubles worth of foreign securities blocked in NSD. To date, Russia has filed over 100 lawsuits against Euroclear to gain access to these assets.
In April 2025, a group of clients of brokers like VTB, "Opening", "Finam", BCS, T-Bank, Rosselkhozbank, Alfa-Bank, and others demanded that the Bank of Russia and the government establish a compensation fund to pay those whose foreign securities were blocked due to sanctions.
In the UK, General Licence INT/2024/4919848 enables the sale, divestment, or transfer of financial instruments held at the NSD and payment of safe-keeping fees. Meanwhile, the UK High Court ruled on a related case involving asset forfeiture of £1.1 million from Russian oligarch Peter Aven, setting a precedent for confiscating funds evading sanctions.
The European Parliament has supported the creation of a legal regime to confiscate Russian state-owned assets frozen by the EU. Euroclear, holding an estimated €191 billion in immobilized Russian assets, is not explicitly mentioned. The EU’s 2025 customs reforms include stricter criminal sanctions for smuggling but do not directly address depositary disputes.
The focus remains on political and legal efforts to enable asset seizures as Euroclear's frozen assets remain under EU sanctions, with growing pressure to repurpose these funds for Ukraine's reconstruction. Belgian authorities have not yet implemented large-scale confiscations, pending further legal frameworks at the EU level.
- I'm not sure if the seizure of €3 billion in frozen Russian assets by Euroclear will provide complete compensation to Western investors, given the widespread impact of counter-sanction mechanisms and legal proceedings in Russia.
- The sanctions imposed on Russian financial entities have not only frozen billions of euros at Euroclear, but have also affected over 5 million private Russian investors, with approximately 6 trillion rubles worth of foreign securities blocked.
- The redistribution of frozen Russian assets by Euroclear is a significant event in the finance industry, following the seizure of €3 billion from Russian NSD accounts, but it does not directly affect the €200 billion in Russian central bank reserves frozen in the EU.
- In the midst of the general-news and crime-and-justice surrounding the sanctions, there have been calls for the creation of a compensation fund by a group of clients of Russian brokers, aiming to pay those whose foreign securities were blocked due to sanctions.
- The EU Parliament has expressed support for the confiscation of Russian state-owned assets frozen by the EU, but there is no explicit mention of Euroclear, which holds an estimated €191 billion in immobilized Russian assets.
- As the focus on asset seizures continues, with growing pressure to repurpose frozen funds for Ukraine's reconstruction, it remains to be seen if the EU will establish the necessary legal frameworks to allow large-scale confiscations, pending further action from Belgian authorities.
