Euroclear received 1.743 bln euros interest on frozen Russian assets in H1

MOSCOW. July 20 (Interfax) - Euroclear received 1.743 billion euros interest on cash balances from Russia-sanctioned assets in H1 2023, the company said in a report.

Such interest earnings are driven by prevailing interest rates and the amount of cash balances that Euroclear is required to invest, it said.

Interest on these assets was 734 million euros in Q1 2023, 110 million euros in H1 2022 and 821 million euros in the whole of 2022.

At present, Euroclear expects the growth of interest income to slow in H2 2023.

Euroclear also said the European Commission was mulling various options to use the profits generated by sanctioned amounts held by financial institutions, including Euroclear, to finance Ukraine's reconstruction. Euroclear said it was focused on minimizing potential legal, technical, and operational risks that may arise for itself and its clients from implementing any proposals from the European Commission.

The company reiterated that it would retain profits related to the Russian sanctions until the situation with respect to them becomes clearer.