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eur-lex.europa.eu | amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine, 21 May
Whereas:
[...]
(8) On 28 February 2022, the Council adopted Decision (CFSP) 2022/335 (4) amending Decision 2014/512/CFSP, which prohibited any transactions related to the management of reserves, as well as of assets of the Central Bank of Russia, including transactions with any legal person, entity or body acting on behalf of, or at the direction of, the Central Bank of Russia. On 9 March 2022, the Council adopted Decision (CFSP) 2022/395 (5) to include such prohibition concerning the Russian National Wealth Fund. As a result of those prohibitions, the relevant assets held by financial institutions in the Member States are 'immobilised'.
[...]
(16) The prohibition of such other transactions generates an extraordinary and unexpected accumulation of cash balances on the balance sheets of central securities depositories within the meaning of Regulation (EU) No 909/2014 of the European Parliament and of the Council (9) that occupy a key position in the settlement and the central maintenance of financial instruments in the Union. That accumulation is due to the immobilisation of assets and reserves of the Central Bank of Russia, or those of any legal person, entity or body acting on behalf of, or at the direction of, the Central Bank of Russia, such as the Russian National Wealth Fund, because any payments of principal and interest, coupons, dividends or other income on securities to the Central Bank of Russia and those persons, entities and bodies are prohibited.

(17) Central securities depositories are in a specific situation, which is different from that of other financial institutions because cash balances of or with customers of central securities depositories are usually transferred out of the central securities depositories before the end of the day and do not yield any remuneration for the customers. The cash balances held by central securities depositories in relation to the assets of the Central Bank of Russia, or those of any legal person, entity or body acting on behalf of, or at the direction of, the Central Bank of Russia, such as the Russian National Wealth Fund, accumulating due to restrictive measures, subsequently need to be prudently managed by the central securities depositories. This results in the generation of unexpected and extraordinary revenues.

(18) Unexpected and extraordinary revenues do not have to be made available to the Central Bank of Russia under applicable rules, even after the discontinuation of the transaction prohibition. Thus, they do not constitute sovereign assets. Therefore, the rules protecting sovereign assets are not applicable to these revenues.
[...]
Article 1
Regulation (EU) No 833/2014 is amended as follows:
(1) In Article 5a, paragraphs 8 to 10 are replaced by the following:

`8.  As of 15 February 2024, and for as long as the restrictive measures set out in paragraph 4 are maintained, central securities depositories within the meaning of Regulation (EU) No 909/2014 holding assets and reserves referred to in paragraph 4 of this Article with a total value exceeding EUR 1 million shall apply the following rules regarding cash balances accumulating exclusively due to the restrictive measures:
(a) those cash balances shall be accounted for separately;
(b) revenues accruing from or generated by the cash balances referred to in point (a) from 15 February 2024 shall be registered separately in the financial accounts of central securities depositories;
(c) without prejudice to paragraphs 9 and 10, net profits determined in respect of revenues referred to in point (b) of this paragraph in accordance with national law, including by deducting all relevant expenses linked to or resulting from the management of the immobilised assets and the risk management associated with the immobilised assets and after deduction of corporate tax under the general regime of the Member State concerned, shall not be disposed of by way of distribution in the form of dividends or in whatever form to the benefit of shareholders or any third party. This prohibition shall not apply to the net profits not constituting the financial contribution referred to in paragraph 9.

9.  The net profits referred to in point (c) of paragraph 8 shall be subject to a financial contribution due by the central securities depositories to the Union.

The rate of the financial contribution shall be 99,7 % of those net profits.

The Commission shall call for financial contributions, in accordance with Regulation (EU, Euratom) 2018/1046 (*1), from the central securities depositories concerned biannually on the basis of the interim financial report referred to in paragraph 11 of this Article. The Commission shall establish the definitive amounts of the financial contribution due annually on the basis of the statutory audited financial statements for year N after they are available in year N+1. If the definitive annual amount of the financial contribution due for year N is lower than the sum of amounts of the biannual payments made in respect of year N, the difference shall be deducted from the next payment due by the central securities depositories to the Union in the year N+1, including biannual payments and transfer of amounts provisionally retained in accordance with paragraph 10, points (e) and (f). The amount due by the central securities depositories resulting from the netting pursuant to the previous sentence shall not be lower than zero.
[...]
Article 2

This Regulation shall enter into force on the date following that of its publication in the Official Journal of the European Union. This Regulation shall be binding in its entirety and directly applicable in all Member States.###

"negative disinformation," quantum disinformation, or positive disinformation?

You be the judge.

by Cat on Thu May 23rd, 2024 at 02:29:52 PM EST
[ Parent ]

Family mug shot. Finance ministers and central bank governors pose at the G7 Finance Ministers Meeting, May 24, 2024 © AFP / Gabriel Bouys
"We are discussing potential schemes to bring forward the extraordinary revenues stemming from immobilized Russian sovereign assets to the benefit of Ukraine," the draft communique reads. "We reaffirm that, consistent with our respective legal systems Russia's sovereign assets in our jurisdictions will remain immobilized until Russia pays for the damage it has caused to Ukraine."
[...]
The move comes after the US pushed for the G-7 to leverage future revenue generated from about $280 billion in Russian central bank funds, most of which lies immobilized in Europe. The plan could unlock an aid package of as much as $50 billion for Ukraine.
by Cat on Sat May 25th, 2024 at 01:07:18 AM EST
[ Parent ]

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