The bloc has approved a measure that would let it seize the interest earned by sanctioned assets
The European Union on Monday took a step towards confiscating the interest earned by Russian sovereign funds the bloc has frozen in relation to the Ukraine conflict.
The EU and the US moved to freeze an estimated $300 billion in assets belonging to the Russian Central Bank in February 2022. Most of those funds are held by the Brussels-based clearinghouse Euroclear.
On Monday, the European Council ordered all depositors holding €1 million ($1.08 million) or more Russian Central Bank assets to keep separate accounts of “extraordinary cash balances accumulating due to EU restrictive measures” and prohibited them from disposing of any interest or profits from the frozen assets.
“This decision paves the way for the Council to decide on a possible establishment of a financial contribution to the EU budget raised on these net profits to support Ukraine and its recovery and reconstruction at a later stage,” the Council said in a statement.
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