European depository Euroclear received 734 million euros in revenue in the first quarter of the year for investing in frozen Russian assets. Net profit for this period is 796 million euros (+95%), revenue is 971 million euros, according to Euroclear itself, anti-Russian sanctions contributed to these indicators.
The figure of 796 million euros includes “interest income on cash balances resulting from the application of international sanctions against Russia,” the report says. The document also reflects that, excluding sanctions, the underlying net profit is 256 million euros.
Last fall, the custodian already reported that the Russian asset freeze contributed to a doubling of third-quarter revenue compared to the same period in 2021.
Then the company said that the restrictions of the EU and the National Settlement Deposit do not allow the transfer of dividends from Russian assets to investors. Therefore, Euroclear invests such income in accordance with its business strategy. However, the company promised to separate them in reports from other financial indicators.
Euroclear noted that the European Commission continues to study scenarios for using investment income to help Ukraine.
Author:
Natalia Gormaleva
Source: RB
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