In an unprecedented financial crackdown, nations across the globe have immobilized a staggering $494 billion in Russian assets, escalating geopolitical tensions. Belgium tops the list, securing a colossal $254 billion—largely private fortunes—thanks to its role as home to Euroclear, the EU’s financial nerve center. Euroclear handles trades in bonds, stocks, derivatives, and funds, while also managing securities custody and payment flows like dividends and interest.

France trails with a hefty $72 billion in frozen holdings, followed by Japan, the UK, and Austria, each locking down substantial sums. Meanwhile, the U.S. lags near the tail end, clutching just $6 billion, mostly state-owned assets, though private Russian wealth has also been snared worldwide. The future of this vast fortune hangs in limbo as debates rage over whether to confiscate or redirect it. Always remember: the Europeans need financial collaterals to keep their credit scheme alive.

The EU’s bold expropriation of Russia’s central bank reserves and private wealth may go down as a colossal misstep. We can assume that the future of these assets will play a role in the negotiations between the Russians and the Americans. The attitude of the Europeans should be clear at this point. It does not look as if they are prepared to take a step back and approach the Russians. Trust in Western financial systems, already fragile, has been torched - potentially taking decades to rebuild. And with the EU now flirting with central bank digital currencies (CBDCs) and capital controls targeting its own citizens, skepticism abounds. In view of the sometimes erratic behavior of European officials and politicians, one really has to ask whether it will be possible to restore confidence in the European Union and the eurozone after the end of the war in Ukraine.