The EU will confiscate Russia’s frozen assets, but not for Ukraine.

Euroclear, the international clearing company, plans to withdraw and distribute approximately €3B in frozen Russian funds to compensate Western investors affected by the decisions of the Russian government.

Euroclear will redistribute €3B of the approximately €10B in cash currently frozen under sanctions. In March, the company received the necessary permission from the competent authority of Belgium, and on April 1, it informed its clients about preparations for payments. These payments are in response to the Russian government seizing billions of euros from Western investors in Russia. Who exactly will receive compensation remains unclear. Critics of the move argue that redistributing Russian assets in favor of Western companies may raise ethical and political concerns.

Meanwhile, the Ukrainian government has approved an agreement with Japan that will enable it to receive around $3B under the G7 ERA initiative.

“We expect that all of the aggressor’s immobilized assets will be confiscated and directed toward the reconstruction of Ukraine,” Prime Minister Denys Shmyhal emphasized.