**Belgium to Seize Billions in Frozen Russian Assets for Western Investors**
Euroclear, the Belgian clearing house, is on the verge of seizing and redistributing approximately €3 billion ($3.4 billion) in frozen assets belonging to sanctioned Russian individuals and entities. According to documents reviewed by Reuters and sources familiar with the matter, the funds will be used to compensate Western investors who incurred losses after Moscow confiscated billions in assets held in Russia.
The €3 billion is part of a larger pool of €10 billion in cash belonging to Russian entities and individuals sanctioned following Russia’s 2022 invasion of Ukraine. Euroclear holds the lion’s share of sanctioned Russian wealth in Europe – more than €180 billion. This move comes after years of Ukraine’s insistence that all frozen Russian assets should be used to bolster its defense, particularly amid ongoing Russian aggression.
**A Shift in Western Policy**
Until now, Western officials have maintained that seizing Russian funds outright was legally impossible and risked destabilizing the global financial system. However, it appears that this position has shifted – at least when Western financial interests are at stake. The European Union paved the way for this move by amending its sanctions framework late last year, allowing compensatory payments under specific conditions.
An internal document reviewed by Reuters shows Euroclear has already informed clients of the upcoming distributions. The document states: “We received authorisation from our competent authority, to unfreeze the compensation amounts and make these available to our participants.” It’s unclear which specific Russian asset holders will be affected by this move.
**Reactions from Russia and Ukraine**
President Vladimir Putin has previously condemned Western efforts to seize Russian assets as “theft,” highlighting the deepening economic confrontation between Russia and the West. In contrast, Ukraine has welcomed the news, seeing it as a step in the right direction towards compensating for its losses.
In conclusion, this development marks a significant shift in Western policy towards using frozen Russian assets to benefit their own financial interests. As tensions between Russia and the West continue to escalate, the use of such assets may become increasingly contentious.
