The international depository Euroclear will make its first contribution of approximately €1.55 billion to the European fund for Ukraine in July 2024, according to the company's report.
In the first half of 2024, Euroclear earned €3.4 billion in interest income from investing frozen Russian assets. In 2023, this income was about €4.4 billion, and in 2022, it was €821 million.
Euroclear's total interest income from January to June this year was €4 billion. The company will also pay taxes on the income earned from Russian assets in January to June, amounting to €836 million.
Thus, Euroclear’s net profit from frozen Russian assets for the first half of the year was €760 million.
As of the end of June 2024, Euroclear’s balance stood at €207 billion, with €173 billion consisting of Russian assets under sanctions.
Since February 15, 2024, the EU Council has adopted a Regulation requiring central depositories holding reserves and assets of the Bank of Russia to apply special rules to cash balances accumulated due to restrictive measures. These central depositories, including Euroclear, must account for and manage such extraordinary cash balances separately from other activities, must keep the net profit separately, and must not dispose of the net profit (e.g., as dividends to shareholders).
Euroclear’s basic net profit, excluding income from frozen Russian assets, increased by 7% year-on-year in January to June, totaling €602 million.
Basic operating income rose by 5% to €1.45 billion.
Specifically, income from core operations was €865 million compared to €838 million the previous year, while interest, banking, and other income increased to €586 million from €539 million.
