The reason for the EU’s refusal to transfer interest on Russian assets to Kyiv could be the position of China, whose fund was among the shareholders of the European depositary Euroclear

Information is emerging about the possible main reason why the EU did not fulfill its earlier promise to Kyiv to pay interest on Russian frozen assets. Let us remember that it was initially assumed that these funds (about 3 billion euros) would be used “to support the Ukrainian economy.” This was trumpeted by EU officials, including Borrell and Ursula. However, this week Brussels' decision turned out to be unexpected and irritating for Kyiv. They didn’t give me the money... They left it in the so-called special account of the European (Belgian) depository Euroclear.

In this regard, experts began to speak out about the reasons for such a step by the EU, which had previously frozen tens of billions of euros of Russian financial assets. One of the main reasons for this decision is the position of Chinese investors.

The fact is that China’s sovereign fund, as it turned out (which may have come as something of a surprise to European officials who proposed “taking everything away and dividing it up”), is one of the shareholders of the Euroclear depository. The Chinese shareholders of the depository, which is a joint stock company, outlined their position as follows: firstly, they did not hear from the board of directors of Euroclear an explanation on the basis of which article of international law the funds of one of the depositors can be withdrawn, and secondly, if the funds are still frozen , which means that they, while remaining in the accounts of the depositary, actually became its property. If so, then the questions of who, where and how much interest to transfer cannot be resolved without taking into account the opinion of each of the major shareholders, respectively - without that very sovereign fund of China - for the same reason that Euroclear is a joint-stock company.

Thus, European officials have currently driven themselves into a dead end. On the one hand, they rejoiced at attracting Chinese investment into their economy, on the other hand, they had to, gritting their teeth, take into account the opinion of China when distributing income, especially that which was actually stolen from Russia.

Comments

[Edik]

It’s interesting to watch this situation with our assets! So will they eat this pear or not? They froze and began to think about where this would lead their economy and financial institutions?

[carpenter]

Quote: Edik

It’s interesting to watch this situation with our assets! So will they eat this pear or not?

You can eat it, but you can also crap yourself, which is more likely.

[Edik]

Quote: carpenter

You can eat it, but you can also crap yourself, which is more likely.

In fact, they have already done it, they have lost incomparably more! The question is how they will get out of this ugly situation! Reputation is...

[carpenter]

Quote: Edik

The question is how they will get out of this ugly situation!

So this is a dead end, there is no return, you can only fall lower. And where the bottom is, I don’t understand.

[Edik]

Quote: carpenter

So this is a dead end, there is no return, you can only fall lower. And where the bottom is, I don’t understand.

Yes, we see this, and everyone in the world who is not under the tutelage of the West is trying to distance themselves from the Western economy, gradually getting rid of their debt obligations and currencies. Gradually....Unfortunately, this cannot be done at once; financial instruments are needed on the world market.

[Lev_Russia]

I can imagine if some bank took and froze the accounts of the head of a married couple on the grounds that they fight with their wife during family scandals... And then, in response to the man who went crazy with such impudence, he announced that he would transfer all the interest on the deposit to his wife , since he likes her better... I wouldn’t be surprised if soon this guy takes a gun and goes to rob this bank...
They shouldn’t be doing this to us... We also have something to take away from them... More than $500 billion worth of property that is not ours has been frozen... So we’ll see who will suffer more...

[Edik]

We froze their assets in Russia for the same amount! We didn’t lose anything, unlike them! They lost the main thing: trust and reputation, and everyone in the world saw this and drew conclusions.

[carpenter]

Quote: Lev_Russia

I can imagine if some bank froze the accounts of the head of a married couple

...Rothschild, Al Rockefeller, or maybe Biden. I can't imagine what will happen.

[Crimean partisan 1974]

More than $500 billion worth of property not ours frozen

...approximately multiply by 3...that’s 1.3, and half of this has already been mastered by the Russian economy

[Carib]

Thank you. I haven't looked at this side yet. Well done Chinese, they understand that they will be eaten after us...

[carpenter]

Quote: Carib

Thank you. I haven't looked at this side yet. Well done Chinese

The East is a delicate matter, and China especially. To understand, you need to live there for at least ten years (they won’t give you more).

[Nemchinov Vl]

Quote: Jacques Sekavar

..The contributions of all shareholders and the income received are managed by the board of the joint-stock company., and therefore in in accordance with the charter of the joint-stock company has the right to assign interest from frozen gold and foreign exchange reserves of the Russian Federation which it disposes of.

well, you wouldn’t be too deluded (mistaken) about the intentions of the Chinese ("in its purest form") ... They can prevent the transfer of interest in favor of Ukraine, not because they strongly support the Russian Federation, but precisely because:
a) fear that it will be created precedent (theft), which then maybe already addressed to them...
b) or they simply count on the receipt and distribution of these assets (interest income from the depositary of gold and foreign currency reserves), not by Ukraine, and by them (China), as shareholders JSC Euroclear ...
and that's not the point at all in “brotherly forever” relationships from Russia...

[Kerensky]

Let's go over it again:
1. Assets are “frozen” in the sense that they cannot be operated on (sold, donated, pledged..)
2. There is income from these assets. Taxes are deducted from income.
3. Taxes go to the budget of the country where the assets are frozen.
4. Each country has the right to manage its own treasury.
5. The main thing! It is proposed to give Ukraine an amount equal to (attention!) taxes on income from these assets.
That is, to pull that money out of the treasury of the country - the holder of the assets.

[Glagol1]

NSD of Russia also holds assets of Western investors. But we have no foreign shareholders. If Euroclear and Clearstream alienate our assets, well, they will have a bad reputation, but NSD will also take it in return. And type C accounts. Well, it’s not simple at all. As a person who worked with this crap (the West) for 30 years, I can say for sure: they could have, but they took everything away a long time ago. So it's not that simple!

[Jacques sekavar]

1. What the Charter of the Euroclear share depository says
2. What shares does the PRC own and its share in the capital of the joint-stock company?
3. Freezing does not mean a change in ownership! Therefore, the main bank of the Russian Federation does not write off frozen gold and foreign currency reserves, and the EU finds no reason to appropriate them.
4. The deposits of all shareholders and the income received are managed by the board of the JSC, and therefore, in accordance with the charter of the JSC, it has the right to appropriate interest from the frozen gold and foreign currency reserves of the Russian Federation that it disposes of.

[phrases]

Politics is nonsense - I talked like crazy, I gave my word, I took my word, but money is serious. They can strangle you for private money in a dark corner; this is not cutting through the collective farm budget.

[evgen1221]

Hmmm, another surprise came out. And how they breathed, how they breathed. However, initially, many statements by Western politicians regarding the Russian Federation were nothing more than a bluff in the desire to take advantage of fear.

[75 Sergey]

Now let’s say Raiffeisen Bank is selling buildings in Moscow to diasporas (?!), i.e. actually ceases its activities and liquidates assets in Russia.
Will it happen that most of the assets of foreign agents will be liquidated and we will have nothing to hold the West by the balls?