In July 2024, the international depository Euroclear will make the first contribution of approximately EUR1.55 billion to the European fund for Ukraine, according to the company’s report.
In the first half of 2024, Euroclear received EUR3.4 billion in interest income from investing blocked Russian assets.
In 2023, these revenues amounted to about EUR4.4 billion, in 2022 – EUR821 million.
Euroclear’s total interest income in January-June this year amounted to EUR4 billion.
The company will also pay taxes on income received from Russian assets in January-June in the amount of EUR836 million.
Thus, Euroclear’s net profit attributable to the frozen assets of the Central Bank of the Russian Federation amounted to EUR760 million in the first half of the year.
Euroclear’s balance sheet as of the end of June 2024 amounted to EUR207 billion, of which EUR173 billion are attributable to Russian assets under sanctions.
Effective February 15, 2024, the EU Council adopted a Regulation requiring central securities depositories that hold reserves and assets of the Bank of Russia to apply special rules to cash balances accumulated due to restrictive measures. These CSDs, including Euroclear, must account for and manage such extraordinary cash balances separately from other activities, must retain net income separately, and must not dispose of the net income (e.g., as dividends to shareholders).
Euroclear’s underlying net profit, which excludes income from the blocked Russian assets, increased by 7% year-on-year in January-June to EUR602 million.
Underlying operating income increased by 5% to EUR1.45 billion.
In particular, revenues from core activities amounted to EUR865 million compared to EUR838 million a year earlier, while interest, banking and other income increased to EUR586 million from EUR539 million.
