Euroclear Issues Warning Against Confiscation of Russian Assets
Euroclear's CEO has stated that Moscow's response has the potential to further destabilize financial markets in the EU. Read Full Article at RT.com.
TroibNews 
Moscow’s response could further destabilize EU financial markets, the CEO of the clearinghouse has said.
The confiscation of Russian assets frozen by the West as part of Ukraine-related sanctions could lead to unintended consequences for the EU, Euroclear CEO Valerie Urbain stated on Friday in an interview with Bloomberg.
The Belgian-based depository manages roughly $213 billion of nearly $300 billion in Russian central bank assets that were frozen by the US and EU shortly after the Ukraine conflict escalated in February 2022.
“There could always be also countermeasures from Russia which could further destabilize the financial markets,” Urbain remarked to the news agency during the World Economic Forum in Davos, Switzerland.
The Euroclear CEO indicated that the frozen funds might serve as leverage in prospective peace negotiations between Moscow and Kiev, while highlighting that some officials are keen on moving forward with confiscation.
Urbain emphasized the necessity of transferring not only the funds but also the liabilities in the event that EU members proceed with expropriation, stressing that the clearinghouse should be safeguarded from potential claims by Russia.
In December, Urbain warned that accessing either the Russian assets or the proceeds generated from them, an issue that EU and G7 officials have debated for nearly three years, could endanger the euro’s status as a global reserve currency and the overall stability of EU finances.
Kiev has been urging its Western allies to seize Russia’s sovereign assets to fund Ukraine’s military and reconstruction efforts. While the administration of former US President Joe Biden backed this proposal, some EU partners dismissed the idea due to concerns about its impact on the financial system and the euro’s reputation.
In July, the European Commission announced its readiness to disburse the first tranche of €1.55 billion derived from the Bank of Russia’s frozen assets to Ukraine.
Moscow has labeled the asset freeze as “theft,” contending that accessing the funds would be illegal and set a concerning precedent. Kremlin spokesman Dmitry Peskov has indicated that the Russian government intends to take legal action against those involved in the seizure.
Navid Kalantari contributed to this report for TROIB News
The confiscation of Russian assets frozen by the West as part of Ukraine-related sanctions could lead to unintended consequences for the EU, Euroclear CEO Valerie Urbain stated on Friday in an interview with Bloomberg.
The Belgian-based depository manages roughly $213 billion of nearly $300 billion in Russian central bank assets that were frozen by the US and EU shortly after the Ukraine conflict escalated in February 2022.
“There could always be also countermeasures from Russia which could further destabilize the financial markets,” Urbain remarked to the news agency during the World Economic Forum in Davos, Switzerland.
The Euroclear CEO indicated that the frozen funds might serve as leverage in prospective peace negotiations between Moscow and Kiev, while highlighting that some officials are keen on moving forward with confiscation.
Urbain emphasized the necessity of transferring not only the funds but also the liabilities in the event that EU members proceed with expropriation, stressing that the clearinghouse should be safeguarded from potential claims by Russia.
In December, Urbain warned that accessing either the Russian assets or the proceeds generated from them, an issue that EU and G7 officials have debated for nearly three years, could endanger the euro’s status as a global reserve currency and the overall stability of EU finances.
Kiev has been urging its Western allies to seize Russia’s sovereign assets to fund Ukraine’s military and reconstruction efforts. While the administration of former US President Joe Biden backed this proposal, some EU partners dismissed the idea due to concerns about its impact on the financial system and the euro’s reputation.
In July, the European Commission announced its readiness to disburse the first tranche of €1.55 billion derived from the Bank of Russia’s frozen assets to Ukraine.
Moscow has labeled the asset freeze as “theft,” contending that accessing the funds would be illegal and set a concerning precedent. Kremlin spokesman Dmitry Peskov has indicated that the Russian government intends to take legal action against those involved in the seizure.
Navid Kalantari contributed to this report for TROIB News
