European Parliament’s Initiative to Control Russian Assets
In September 2026, the European Parliament began discussing a proposal to transfer more than 300 billion euros of Bank of Russia assets to the management of a new European Union depository. The proposal aims to strengthen control over frozen assets and increase transparency in their use for the benefit of European countries.
Experts estimate that the Bank of Russia’s assets held in the Eurozone and other EU countries include government bonds and foreign currency reserves frozen under sanctions imposed in recent years. The new depository is intended to provide a legal and financial framework for managing these funds.
Objectives and Functions of the New EU Depository
The new institution will act as a central depository, accumulating and administering frozen Russian assets. It is expected to operate under the jurisdiction of the European Court of Justice and maintain close cooperation with the European Central Bank and the European Commission.
The depository will be authorized to assess the market value of assets, manage them, and potentially redistribute funds. With this measure, the EU seeks to avoid losing control and ensure the long-term preservation of over 300 billion euros in assets—equivalent to roughly 15% of the EU’s annual budget.
Reactions and Interests of Key Stakeholders
The proposal is backed in the European Parliament by factions favoring stronger sanctions and protection of the EU’s economic interests. Representatives of the European People’s Party have stated that the new institution will be an important tool for balanced financial risk management.
At the same time, some EU countries with smaller volumes of frozen assets express concerns about the costs of establishing and maintaining the depository. Spain and Portugal advocate for a transparent financing mechanism that does not impose an excessive burden on national budgets.
Legal and Economic Implications
Creating the depository requires alignment with European legislation, including financial supervision regulations and international sanctions. In particular, the legal status of the assets and guarantees for their safekeeping must be clarified to avoid risks of lawsuits and international disputes.
Economists predict that centralized management of Bank of Russia assets could increase the effectiveness of sanctions and reduce corruption risks in handling large financial flows. Additionally, it will allow the EU to respond more flexibly to shifts in the international landscape.
Prospects and Timeline for Implementation
The final decision on establishing the new depository is expected in the first quarter of 2027. After the institution is approved, work will begin on forming its structure and staffing, as well as developing detailed operational regulations.
Implementation could take up to two years, including adapting national legal systems and building technical infrastructure. The European Parliament anticipates that the depository will become a sustainable asset management mechanism with potential expansion to other categories of property.
Summary: The European Parliament is moving toward creating a new institution to control over €300 billion in Russian assets, enhancing financial regulation and sanction enforcement within the EU.