Since the war in Ukraine began in 2022billions of euros worth of Western companies were trapped in The Russian government blocked these funds in response to sanctions imposed by the European Union and the United States. For months, that money seemed lost. Now, some companies have found a legal way out, although it is not easy.
The system works like an exchange. Russia froze the money of companies that it considers “hostile states” —including the entire EU, the US and the United Kingdom— and placed it in the so-called Type C accounts, created by the Russian central bank to prevent the outflow of capital. At the same time, the West blocked Russian assets on its territory, including funds deposited in entities such as Euroclear.
In the midst of this mutual blockade, A formula has emerged: exchange assets of similar value between both parties. That is, releasing Western money held in Russia in exchange for unlocking Russian funds trapped in Europe. To achieve this, official permissions are needed on both sides.
Lawyer Lukas Röper, from the Vienna firm rk partners, is one of the specialists who works in these processes. As explained to the newspaper : “We have already successfully concluded three cases, and a fourth will soon be completed.” And he adds that “these are renowned companies from Switzerland and Italy, where the process has been successful. Around 300 million euros have been released from Russia in this way.”
It is not a quick path. First, Russian companies that want to recover assets in Europe must prove that they no longer have a relationship with the sanctioned Russian depositary. They must then request authorization from national authorities, such as the Ministry of Finance in Belgium or the Bundesbank in Germany.
Röper assures that “the most difficult thing is not necessarily to obtain the necessary permissions from both sides; the Russian side and, especially, the German Bundesbank are very cooperative.” He real challenge, explains, is another: “The most difficult thing is to ensure that the assets to be released in Russia and Europe have a comparable value, that is, that the match is established.”
The total figures remain uncertain. Germany alone would have an exposure of more than 100 billion euros in Russia. Meanwhile, dividends and bond payments have been accumulating in Russian special accounts that cannot leave the country.
Although the 300 million released so far seem little compared to the enormous amounts blocked, interest is growing. “We are currently in talks with a dozen European interested parties,” says Röper.
Not all attempts have gone well. More ambitious operations, such as those attempted by the Austrian bank Raiffeisenbank International and the construction company Strabag, did not prosper as they did not have sufficient political support within the European Union.
In parallel, some Russian businessmen have appealed to European courts to challenge personal sanctions. The most striking case is that of Arkady Volozh, founder of Yandex, who managed to get off the sanctions list and has launched new technological projects outside Russia.
Meanwhile, the legal battle continues. Russian companies have filed million-dollar lawsuits against EU countries for the freezing of their assets. Even the Russian central bank has claimed huge damages against Euroclear.
