Frankfurter Rundschau Escalation against Putin – EU seizes Russian billions for the first time - The Belgian financial services company Euroclear is said to be confiscating Russian funds for the first time and distributing them to Western investors. A total of three billion euros is involved, Reuters reported on May 2, citing sources familiar with the matter. This step is seen as compensation for the investors whose funds were confiscated by Moscow and as a direct response to the Kremlin's action. Lars-Eric Nievelstein • 3 hours • 3 minutes read Markets today After Russia's expropriation Escalation against Putin – EU seizes Russian billions for the first time The EU has frozen billions of Russian funds because of the war in Ukraine. These funds are now supposed to help Ukraine. This is what's behind it. Brussels – Russian funds are supposed to help with the defense and reconstruction of Ukraine: What sounds contradictory is the declared goal of the European Union. Billions of Russian assets have been frozen in the West. They are intended to help Ukraine at some point, but it is not yet clear how this will happen. Because Kremlin leader Vladimir Putin is now confiscating Western assets, the EU is following suit. New blow to Russia's economy – EU withdraws money from confiscated assets The Belgian financial services company Euroclear is said to be confiscating Russian assets for the first time and distributing them to Western investors. The total amount involved is three billion euros, Reuters reported on May 2, citing sources familiar with the matter. This step is seen as compensation for the investors whose funds were confiscated by Moscow and as a direct response to the Kremlin's action. The EU has frozen billions of Russian assets because of the war in Ukraine. These assets are now intended to help Ukraine. This is what's behind it. Euroclear is tapping into a pool of ten billion euros in Russian assets that were frozen by EU sanctions in the wake of the war in Ukraine. It is also said to be a direct escalation of the financial pressure Europe is exerting against Russia. Previously, Europe was very cautious about using the frozen Russian billions – this is the first time that money has flowed directly from Russian assets to Western actors. Previously, Europe was careful to only siphon off the interest earned on the Russian assets. This is now over. Russian assets for Ukraine reconstruction – Ukraine facility aims to bring billions into the country This is where the EU's so-called Ukraine Facility comes into play. This is a European Union support mechanism designed to help Ukraine rebuild and modernize the country. Furthermore, the facility is intended to strengthen the Ukrainian private sector "for a rapid economic recovery" and enable the attacked country to implement the necessary reforms "on its path to EU membership." Within this mechanism, the EU had decided to support Ukraine with up to €50 billion in funding. The money is to be paid between 2024 and 2027; a payment of €3.5 billion was made only on April 1, 2025. To receive this support, Ukraine must fulfill several conditions set by the EU. These include, for example, the establishment and maintenance of democracy, legislation, and human rights. As long as the Commission determines that these conditions are met, Ukraine is to receive quarterly payments of billions. EU withdraws several billion from Russia – after Putin's proposal Back to Euroclear. The company has apparently received approval from the Belgian authorities to make the payment. Importantly, this redistribution of assets affects frozen Russian funds, but explicitly not the €200 billion in financial reserves of the Russian Central Bank. Reuters also reported this. Nevertheless, this step would shrink the stockpile of Russian money and shares held by the West. Furthermore, the money will now go not to Ukraine, but to Western investors. The Kremlin had already threatened retaliation if Western countries confiscated Russian funds to transfer them to Ukraine. Russia, in turn, had specifically amended its legislation in 2024 to allow the confiscation of Western assets. €200 billion remains untouched – countries act individually The West, for its part, is still looking for ways to access the €200 billion in central bank assets.

Frankfurter Rundschau Escalation against Putin – EU seizes Russian billions for the first time - The Belgian financial services company Euroclear is said to be confiscating Russian funds for the first time and distributing them to Western investors. A total of three billion euros is involved, Reuters reported on May 2, citing sources familiar with the matter. This step is seen as compensation for the investors whose funds were confiscated by Moscow and as a direct response to the Kremlin's action. Lars-Eric Nievelstein • 3 hours • 3 minutes read Markets today After Russia's expropriation Escalation against Putin – EU seizes Russian billions for the first time The EU has frozen billions of Russian funds because of the war in Ukraine. These funds are now supposed to help Ukraine. This is what's behind it. Brussels – Russian funds are supposed to help with the defense and reconstruction of Ukraine: What sounds contradictory is the declared goal of the European Union. Billions of Russian assets have been frozen in the West. They are intended to help Ukraine at some point, but it is not yet clear how this will happen. Because Kremlin leader Vladimir Putin is now confiscating Western assets, the EU is following suit. New blow to Russia's economy – EU withdraws money from confiscated assets The Belgian financial services company Euroclear is said to be confiscating Russian assets for the first time and distributing them to Western investors. The total amount involved is three billion euros, Reuters reported on May 2, citing sources familiar with the matter. This step is seen as compensation for the investors whose funds were confiscated by Moscow and as a direct response to the Kremlin's action. The EU has frozen billions of Russian assets because of the war in Ukraine. These assets are now intended to help Ukraine. This is what's behind it. Euroclear is tapping into a pool of ten billion euros in Russian assets that were frozen by EU sanctions in the wake of the war in Ukraine. It is also said to be a direct escalation of the financial pressure Europe is exerting against Russia. Previously, Europe was very cautious about using the frozen Russian billions – this is the first time that money has flowed directly from Russian assets to Western actors. Previously, Europe was careful to only siphon off the interest earned on the Russian assets. This is now over. Russian assets for Ukraine reconstruction – Ukraine facility aims to bring billions into the country This is where the EU's so-called Ukraine Facility comes into play. This is a European Union support mechanism designed to help Ukraine rebuild and modernize the country. Furthermore, the facility is intended to strengthen the Ukrainian private sector "for a rapid economic recovery" and enable the attacked country to implement the necessary reforms "on its path to EU membership." Within this mechanism, the EU had decided to support Ukraine with up to €50 billion in funding. The money is to be paid between 2024 and 2027; a payment of €3.5 billion was made only on April 1, 2025. To receive this support, Ukraine must fulfill several conditions set by the EU. These include, for example, the establishment and maintenance of democracy, legislation, and human rights. As long as the Commission determines that these conditions are met, Ukraine is to receive quarterly payments of billions. EU withdraws several billion from Russia – after Putin's proposal Back to Euroclear. The company has apparently received approval from the Belgian authorities to make the payment. Importantly, this redistribution of assets affects frozen Russian funds, but explicitly not the €200 billion in financial reserves of the Russian Central Bank. Reuters also reported this. Nevertheless, this step would shrink the stockpile of Russian money and shares held by the West. Furthermore, the money will now go not to Ukraine, but to Western investors. The Kremlin had already threatened retaliation if Western countries confiscated Russian funds to transfer them to Ukraine. Russia, in turn, had specifically amended its legislation in 2024 to allow the confiscation of Western assets. €200 billion remains untouched – countries act individually The West, for its part, is still looking for ways to access the €200 billion in central bank assets.