Maxima Legal has received the first positive decisions on unblocking assets in EuroClear

Maxim Avrashkov - Managing Partner Natalia Demina - Partner Nikita Deynega — Partner

Maxima Legal together with the firm`s European partner has received the first licences from the Belgian Treasury to unblock funds for the European residence permit/ passport and account holders.

At the same time, despite the fact that earlier media wrote that applications for licences could be submitted only until 7 January 2023, in reality, failure to meet this deadline is not an obstacle to the application (basic rules of the EU Council Regulation No. 269/2014 do not contain such restrictions).

At the same time, according to Maxima Legal experts, probability of unblocking assets increases if requirements for applications developed by the European regulator are met, the key ones being:

  • a European residence permit (as an advantage)
  • a valid European account (the EU, Switzerland, Monaco)
  • a European guarantor, who conducts due diligence of the affected investor and its assets, confirms the source of origin of capital and guarantees compliance of the declared transaction with the requirements of the EU sanctions regulation. It should be noted that the services of the European guarantor are ready to be provided to Maxima Legal’s clients by trusted legal and financial firms in the EU and Switzerland.
  • a confirmation of termination of relations with NSD
  • a confirmation that there is no material benefit from sanctioned entities in the chain between NSD and the client`s broker (if there is a sanctioned broker before NSD)

Since every situation is unique and not all investors can request the licence, Maxima Legal also implements other options, including filing claims with Russian courts against European depositories for damages. For example, Maxima Legal has initiated the first such claim in St Petersburg and is currently representing a private investor in proceedings to recover from EUROCLEAR BANK SANV the losses caused by the blocking of securities, as well as the amounts of unpaid coupon income and unpaid redemption value of securities.