Euroclear Threatens to Seize $3.4 Billion of Frozen Russian Assets
May 3, 2025, 10:44 am

Euroclear Threatens to Seize $3.4 Billion of Frozen Russian Assets

بلجيكا وروسيا

Belgian financial services company Euroclear plans to confiscate and redistribute approximately €3.4 billion ($3.4 billion) of frozen Russian funds amid escalating European measures against Moscow.

Sources familiar with the matter, who obtained documents from Reuters, revealed that Euroclear aims to seize and reallocate these assets—part of roughly €10 billion in Russian property subject to EU sanctions—marking one of the largest actions to date in the context of the Russia-Ukraine conflict and tensions between Western and Russian blocs. This move aligns with Europe’s efforts to strengthen its sanctions against Moscow and compensate Western investors affected by Russia's confiscation of hundreds of billions of assets in recent months.

According to the sources, Euroclear intends to disburse these funds as part of ongoing efforts to compensate investors, both European and international, who had invested in Russian institutions before the crisis in Ukraine escalated. The information indicates this step is part of significant shifts within the European sanctions framework, which has allowed for the release of certain assets despite restrictions on Russian holdings.

The sources also noted that Euroclear has received authorization from relevant authorities to lift the freeze on these funds, which will be used to uphold the rights of investors amid mounting pressure from international stakeholders demanding protection of their assets, including properties, factories, real estate, and cash held in Russia.

Meanwhile, Moscow insists that the status of the frozen assets is linked to illegal practices. The Russian government announced the confiscation of over €3 billion held by Euroclear, intended to compensate Russian investors. This move coincided with Moscow filing legal suits against the European institution. It is worth mentioning that Russian Central Bank reserves exceeding €200 billion, frozen in Europe, have not yet been affected by the scheduled payments to Western investors, according to two sources.

The issue continues to be a focal point of political and legal debate between Moscow and Western countries. Russia has broadly criticized European financial sanctions, intensifying diplomatic and judicial efforts to recover its assets. Europe, meanwhile, persists in implementing unprecedented sanctions targeting Moscow’s financial assets, representing some of the most extensive measures imposed since the start of the conflict in February 2022.

The management and recovery of Russian assets in Europe remain one of the most significant challenges in the bilateral relationship. Legal and diplomatic pressures are intensifying as Moscow continues to file lawsuits against Euroclear and other European institutions in an effort to recover its funds and restore financial balance amid an unprecedented economic and political confrontation.

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”