EU adopts significant decision on use of extraordinary revenues generated by immobilised Russian assets

In response to Russia’s illegal invasion of Ukraine, the EU has imposed sanctions prohibiting transactions with the Central Bank of the Russian Federation (CBR).

In response to Russia’s illegal invasion of Ukraine, the EU has imposed sanctions prohibiting transactions with the Central Bank of the Russian Federation (CBR).

As a result of that prohibition, the CRB’s assets held by central securities depositories (CSDs) in the EU Member States cannot be returned to the CRB but will remain immobilised in the CSDs.

EU central securities depositories are holding around EUR 200 billion in the CRB’s immobilised assets. The CSDs generate extraordinary revenues of about EUR 2.5 to 3 billion annually from the assets. No such assets are immobilised in Finland.

On 21 May 2024, the EU made a decision to use these extraordinary revenues to support Ukraine. In the first phase, 90 per cent of the support will be used for further military support to Ukraine through the European Peace Facility and 10 per cent for Ukraine’s reconstruction financed from the EU budget. This allocation will be reviewed yearly.

More background information is available from the EU press release(Link to another website.).