MOSCOW, April 11 (Reuters) - Brokerage customers of the

Russian subsidiary of U.S. bank Citi have started

receiving coupon payments on securities frozen in Europe by

Western sanctions, according to Russian law firms, citing their

clients.

Citi did not immediately respond to a request for comment.

Western sanctions imposed in June 2022 on Russia's National

Settlement Depository (NSD) in response to Russia's military

offensive in Ukraine led to Russian investors' holdings in

European depositories Euroclear and Clearstream being frozen.

Around $300 billion of Russia's sovereign assets were frozen

by sanctions, but millions of private investors were also

affected.

"Since the evening of April 9, Citibank clients have started

receiving coupon payments and settlements that were for a long

time considered frozen," Wealth IQ lawyers said in a report.

"We are talking only about Citi Russia and only about money

(not securities)."

The volume of funds being released was not immediately

clear.

The Delcredere law firm said it had received a number of

permits from the Belgian Treasury to withdraw blocked money from

Citi clients in Russia.

The Belgian finance ministry did not immediately respond to

a request for comment.

This movement of funds may be unique because Citi is not

under sanctions and has a direct account with Euroclear, Elena

Ryazanova, deputy director of Sinara Investment Bank's legal

department said on Telegram. Most major Russian banks are

blocked from such transactions by sanctions.

($1 = 84.2500 roubles)

(Editing by Mark Potter)