Russian sanctions cost Euroclear €233 million in nine months
Key Facts
Euroclear said Russian sanctions and countermeasures cost it €233 million in direct costs in the first nine months of 2026, including €162 million in provisions for claims before Russian courts. The company said in results released on October 30 that the measures reduced business income by €27 million over the same period. The €27 million figure does not represent total business income; gross income rose 9% to €1.5 billion. Adjusted net profit also increased 8% to €963 million. The results put the legal and financial burdens linked to Russia in the context of growth in the company’s core business during the period ended in September.
The provisions relate to claims before Russian courts, as the Russian central bank pursues a legal dispute with the Belgian asset custodian. Euroclear said it "strongly disputes the Russian central bank’s claim, which has no basis," adding that it would continue to defend its interests, including before Belgian courts. Euroclear’s appeal in Moscow was rejected in July, leaving in place a ruling ordering it to compensate the Russian central bank 18.2 trillion roubles, according to Reuters. The cassation appeal was then rejected on October 22, according to the case update in the company’s results. These developments explain why €162 million of the direct costs was set aside for claims before Russian courts, as the company continues to challenge the claim.
The scale of the bank’s exposure to Russian assets is reflected on its balance sheet: Euroclear Bank’s total balance sheet stood at €244 billion at the end of September, of which €204 billion was linked to Russian assets subject to sanctions. Those same assets generated interest income of €3.6 billion from the start of 2026 through the end of September. Interest income fell 6% year on year, which the company attributed to lower interest rates. It said future interest income would evolve in line with upcoming monetary policy rates. This means returns on frozen assets, alongside legal costs, are affected by the path of interest rates, as the company describes it.
Alongside interest income, Euroclear reported an exceptional profit contribution of €2.4 billion through September 2026. The figure comes in the context of profit contributions linked to Russian assets subject to sanctions, while direct costs and the loss in business income that the company attributed to sanctions and countermeasures continue to accrue. A comparison with 2025 shows these items vary from one period to another: that year, the company recorded a €34 million loss in business income and direct costs of €113 million. It also took a provision of €342 million at the time because of material risks and uncertainties. In the same year, interest income from Russian assets was €5 billion, down 26% year on year due to lower interest rates.
The Moscow dispute began with a lawsuit filed by the Russian central bank in December 2025, according to Reuters, at a time when European Union leaders were considering using part of the frozen assets to fund Ukraine. Reuters reported that a Moscow court rejected Euroclear’s appeal in July against the compensation ruling of 18.2 trillion roubles. It added that enforcement of the ruling within the European Union was unlikely because Russian courts have no jurisdiction there, although the central bank could seek to seize Euroclear assets in other countries. Euroclear, for its part, has only said it will continue to defend its interests, including before Belgian courts. This legal process provides context for the provisions announced by the company and for the claim it says it is challenging.
A rating review published in the middle of the year provides a dated backdrop to the risk assessment: Fitch affirmed Euroclear’s rating at AA with a stable outlook in a report issued on July 7. The report estimated that liquidity risks and potential legal risks to Euroclear Bank arising from the frozen Russian central bank assets were remote over 12 to 18 months. That assessment pertains to the mid-year report, while October’s results later provided nine-month figures and a legal update that included the rejection of the cassation appeal on October 22. Euroclear is provisionally scheduled to announce its 2026 financial year results on February 5, 2027, followed by its first-quarter 2027 results on May 7.