EU orders the segregation of Central Bank of Russia’s assets

13 February 2024

EU orders the segregation of Central Bank of Russia’s assets

The EU has ordered central securities depositories that are holding more than €1 million of the Central Bank of Russia’s assets to “account extraordinary cash balances accumulating due to EU sanctions separately” and “keep corresponding revenues separate” and prohibited them from disposing of the ensuing net profits (regulation, decision).

Central securities depositories may request supervisory authorities to authorise a release of a share of those net profits to pay for complying with statutory capital and risk management requirements.

The EU Council has said that this “paves the way for the Council to decide on a possible establishment of a financial contribution to the EU budget raised on these net profits to support Ukraine and its recovery and reconstruction at a later stage.”

Around €200bn of Central Bank of Russia assets are frozen in the EU.

Maya Lester KC is a senior barrister (King’s Counsel) at Brick Court Chambers with a wide-ranging practice in public law, European law, competition law, international law, human rights & civil liberties. She has a particular expertise in sanctions...