The Belgian Treasury has authorized Euroclear to unfreeze some Russian assets. Kirill Chernovol, researcher at the Gaidar Institute’s International Best Practices Analysis Department, said in a commentary for Rossiyskaya Gazeta that the EU sanctions legislation can be applied flexibly if local authorities wish to do so.
«The special license allowed the frozen funds to be used to compensate for the damage incurred. Thus, the mechanism of the so-called «exchange of frozen assets» was implemented. Previously, as a result of Russian court decisions, foreign investors' funds were debited from Euroclear’s special C-type account at NSD in favor of Russian investors. Now an equivalent amount is unblocked in Belgium to be paid to the affected foreign investors. This is a precedent for international sanction practice, demonstrating that it is possible to partially satisfy the claims of affected parties without having to lift sanctions. As a result, Euroclear’s foreign clients receive compensation for lost payments, while for the Russian NSD it means a reduction in part of its frozen assets," the expert said.
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