Russia’s National Settlement Depository lost a bid to overturn European Union sanctions over its alleged role in helping fund President Vladimir Putin’s invasion of Ukraine.
The Moscow-based institution was hit by EU sanctions in 2022 when the bloc alleged that as the main custodian of Russian securities the body enabled the Russian government to mobilize its resources to support the war effort.
The NSD “failed to demonstrate” that the EU “erred in finding that that undertaking was a systemically important financial institution which played an essential role in the functioning of Russia’s financial system,” EU judges ruled. The decision can be appealed to the bloc’s highest court — the European Court of Justice.
The depository currently has around €70 billion ($77.3 billion) immobilized at Euroclear, the Belgium-based clearing house, according to one person familiar with the matter.
These assets are currently not used to generate the windfall profits transferred as financial support to Ukraine, but the ruling could pave the way to use them and create additional proceeds late, as the EU did with the Russian central bank assets, the person added, who asked not to be identified because the matter is private.
A Euroclear spokesperson confirmed that the windfall contribution for Ukraine is derived from the central bank of Russia’s assets from Feb. 15, 2024, onwards.
Euroclear made a first payment of €1.55 billion. The clearing house is holding €173 billion related to sanctioned Russian assets, including immobilized assets of its central bank. The spokesperson declined to comment on the figures attributed to the NSD.
Was this article valuable?
Here are more articles you may enjoy.
Florida Governor Floats Condo Relief Session; Condo Captive Idea Flagging 
EPIC Insurance Inks Deal to Provide Risk Management for Miami Dolphins, Stadium 
Trojan Condoms Contain ‘Forever Chemicals,’ Lawsuit Claims 
An ESG Backlash Erupts in Europe on World’s Strictest Rules 
