Frozen Russian assets at Euroclear earn Belgium 1.7 billion euros in tax revenue
Frozen Russian assets at the Belgium-based financial services company Euroclear provided Belgium with 1.7 billion euros in tax revenue last year. The government will use that money to provide aid to Ukraine.
Euroclear is not well known to the general public, but is a global financial player. Its headquarters are in Brussels, and the Belgian federal government holds about 12 per cent of the shares. Euroclear handles large financial transactions between investors and major financial institutions and governments. It sometimes describes itself as the “notary of the financial world”.
It normally also provides those “notary services” for Russian companies and governments. But since the war in Ukraine, international sanctions have been imposed on Russia. As a result, those Russian assets – such as cash, shares and bonds – at Euroclear are frozen. They are no longer available to Russian owners. The value of those assets amounted to 183 billion euros at the end of 2024.
The interest and dividends on all those Russian billions end up in a blocked account at Euroclear. That money is reinvested by Euroclear, and is largely earmarked for a support fund: the European Fund for Ukraine. For the 2024 financial year, 3.55 billion euros was contributed to the fund in this way. A first part of 1.55 billion euros was paid into the fund in July 2024, a second payment of about 2 billion euros will follow next month.
Moreover, the Belgian state also levies a tax on all proceeds generated by the Russian assets. For 2024, the generated tax revenue amounted to 1.7 billion euros. The Belgian government has previously stated that this money will also be used for aid to Ukraine.
The Euroclear office tower in Brussels © BELGA PHOTO BELGIAN_FREELANCE
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