Frozen Russian assets held by securities giant Euroclear in Belgium generated €1.7 billion in tax revenue for Belgium last year. That's according to Euroclear’s annual figures. The Belgian government will use the cash to provide aid to Ukraine. The total amount of Russian assets blocked at Euroclear amounts to some 183 billion euros.
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Russia’s frozen Euroclear assets earn Belgium 1.7 billion euros in tax
Colin Clapson
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The public at large is usually not familiar with Euroclear, but the company is a global financial player. Its headquarters are in Brussels and Belgium's federal government holds some 12 per cent of the company’s shares. Other Belgian banks and governments also hold stakes.
Euroclear is a securities house. It handles large financial transactions between investors and major financial institutions and governments. It sometimes describes itself as the ‘notary of the financial world’.
Globally, Euroclear is the market leader for the ‘notary services’ it provides. In 2024, the company posted a net profit of EUR 1.038 billion, its annual figures show.
Russian assets frozen
Euroclear also provides such services to Russian companies and governments. But since the war in Ukraine, international sanctions have been imposed on Russia. As a result, Russian assets including cash, shares and bonds at Euroclear are frozen. They can no longer be accessed by their Russian owners. By the end of 2024, these frozen assets amounted to €183 billion.
The interest and dividends on all these 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.
During the 2024 financial year, €3.55 billion was contributed to the fund. A first instalment of 1.55 billion euros was paid into the fund in July 2024, a second payment of some 2 billion euros will follow next month.
The Belgian state also levies a tax on all proceeds generated by the Russian assets. In 2024, this amounted to €1.7 billion. The Belgian government previously said the tax would also be used to fund aid for Ukraine.