Those_Assets

 Copilot:

Tell me about the frozen Russian assets; what is their value?

The frozen Russian sovereign assets in Europe are valued at about €210 billion (≈ $246 billion USD), with global totals reaching around €300 billion. Most of these funds are held at Euroclear in Belgium, making that country central to the debate over whether they can be used to support Ukraine.

📊 Breakdown of Frozen Assets

EU-held assets: ~€210 billion immobilized in Europe, primarily Russian central bank reserves in bonds and cash.

Global total: ~€300 billion frozen worldwide after Russia’s 2022 invasion of Ukraine.

Location: The lion’s share is at Euroclear, a Brussels-based securities depository.

Nature of assets: Sovereign reserves (cash, bonds, securities) belonging to Russia’s central bank.

Private assets: In addition to sovereign funds, yachts, real estate, and accounts of sanctioned Russian oligarchs have also been frozen, but these are separate from the central bank reserves.

⚖️ Legal & Political Controversy

International law: Sovereign assets are protected by state immunity, meaning they cannot legally be confiscated outright.

EU proposal: The European Commission suggested using up to €165 billion of the frozen assets’ proceeds (interest and matured bonds) without confiscating them.

Belgium’s resistance: Belgium, where Euroclear is based, has warned that using these funds could expose it to lawsuits and retaliation from Moscow.

Russia’s response: The Kremlin has already filed lawsuits against Euroclear, claiming illegal blocking of its assets.

🧭 Implications

For Ukraine: If tapped, these assets could provide a massive funding source for defense and reconstruction, estimated at over $500 billion in costs.

For the EU: Using them would be unprecedented, raising questions about financial stability, legal precedent, and possible Russian retaliation.

Current status: Because of these risks, the EU opted instead for its own €90 billion loan program to Ukraine for 2026–2027, leaving the frozen assets untouched for now.

✅ In short: About €210 billion of Russian central bank assets are frozen in Europe, €300 billion worldwide. They represent a potential but legally contested funding source for Ukraine, which the EU has so far avoided using directly.

Would you like me to create a side‑by‑side table comparing the EU’s €90 billion loan vs. the frozen Russian assets plan—to show why leaders chose one over the other?

Whatever possessed Russia to pour all that money into a European Bank; I gather these are invested at high yield??

Russia placed its reserves in European institutions like Euroclear not to chase high yields, but to ensure liquidity, safety, and global credibility. These assets were invested in low‑risk government bonds and securities, not high‑yield instruments.

🌍 Why Russia Put Reserves in Europe

Liquidity & convertibility:  

Central banks hold reserves in major international currencies (euros, dollars, pounds) so they can intervene in foreign exchange markets quickly. Euroclear, based in Belgium, is one of the world’s largest securities depositories, making it a natural place to park reserves.

Safety & credibility:  

Before 2022, Russia wanted to signal financial stability by keeping reserves in respected Western institutions. Holding assets in Euroclear gave Moscow access to deep, liquid markets and reassured investors that Russia could meet obligations.

Diversification:  

Russia deliberately reduced its holdings of U.S. Treasuries after 2014 sanctions, shifting more into euro‑denominated assets. By 2022, about half of Russia’s $600 billion reserves were in euros, much of it lodged at Euroclear.

💰 Were They “High Yield”?

No — they were low‑risk, low‑yield investments.  

Central bank reserves are typically invested in safe government bonds (German Bunds, French OATs, etc.) and short‑term securities.

Purpose: Stability and liquidity, not profit.

Irony: Because yields rose sharply after 2022 (due to inflation and ECB rate hikes), the frozen Russian assets at Euroclear began generating billions in interest income. Euroclear itself earned over €3 billion in 2023 just from the immobilized Russian funds.

⚖️ The Current Dispute

Russia is suing Euroclear for €185–200 billion in frozen reserves, claiming “illegal actions”.

The EU is debating whether to use the interest proceeds (not the principal) to fund Ukraine. This avoids outright confiscation but still channels billions annually to Kyiv.

Belgium fears retaliation, since Euroclear is headquartered there, and Moscow has already filed lawsuits demanding damages.

📊 Key Takeaway

Russia didn’t “pour money into a European bank” for yield — it was standard central bank practice to hold reserves in safe, liquid euro assets. The twist is that rising interest rates turned those frozen reserves into a lucrative source of income, which the EU now wants to redirect to Ukraine.

Would you like me to show you a numerical breakdown of how much interest income these frozen assets are generating each year (and how much could realistically be diverted to Ukraine)?

Where are the other 300 billion?

About €300 billion ($325–330 billion USD) in Russian sovereign assets were frozen worldwide after the 2022 invasion of Ukraine. Roughly €210 billion are immobilized in Europe (mostly at Euroclear in Belgium), while the rest are spread across the U.S., U.K., Japan, Canada, and other G7 countries.

                                                                                   

⚖️ Why They’re Frozen

These are Russian central bank reserves held abroad in foreign currencies and securities.

Sanctions after the invasion prohibited transactions, effectively immobilizing the funds.

Assets cannot be confiscated outright under international law, but their interest income (billions annually) is now being debated as a funding source for Ukraine.

🔑 Key Points

Euroclear in Belgium is the biggest single holder, making the EU central to the debate.

France holds the second-largest block but has resisted transparency.

U.S., U.K., Japan, Canada froze tens of billions each, coordinated under G7 sanctions.

Legal dilemma: Sovereign immunity prevents outright seizure, so the EU is considering using only the proceeds (interest) rather than the principal.

✅ In short: Of the €300 billion frozen worldwide, about two-thirds are in Europe (mainly Belgium), with the rest distributed across the U.S., U.K., Japan, Canada, and other allies.

Would you like me to break down how much annual interest income these frozen assets are generating—since that’s the part the EU is most likely to redirect to Ukraine?