Euroclear warned the EU about the risks of using russia's frozen assets

This is stated in a letter from Euroclear CEO Valérie Urbain, which was seen by the Financial Times, Ukrinform reports.

In its letter to European Commission President Ursula von der Leyen and European Council President António Costa, Euroclear warned that the so-called ‘reparations credit’ could damage the attractiveness of European financial markets and the investment climate in Europe "as investors, in particular sovereign funds and central banks, will perceive this initiative as a confiscation of central bank reserves, undermining the rule of law."

Urben added that forcing Euroclear to invest in ‘zero-interest financing of individual debt instruments’ would be seen by russia as confiscation, leading to retaliatory measures and potential legal problems from which Euroclear should be protected.

She noted that the ‘reparations loan’ scheme should include guarantees for Euroclear ‘as long as legal risks exist.’

Source: Ukrinform, Financial Times