Euroclear warns the EU that it will not be responsible for confiscation of russian assets

Valerie Urban, CEO of Euroclear Ltd. Valerie Urben emphasized that any decision to confiscate assets should be accompanied by the transfer of all liabilities to avoid a situation in which russia could claim the return of its securities.

“We cannot be in a situation where assets are seized, but in a couple of years russia comes knocking on the door and says: “I want my securities back,“ and the securities have already disappeared,” she emphasized. - “If there is a confiscation of assets, everything must move, including liabilities.

The EU is already using the profits from sanctioned russian assets to support Ukraine. As part of the G7 plan, the allies have agreed on a mechanism that allows them to use these funds to finance a €50 billion loan package for Ukraine.

The publication explained that amid concerns about the stability of US aid to Ukraine, especially if Donald Trump returns to the White House, the issue of confiscation of russian assets, estimated at €180 billion in Euroclear alone, has become relevant again. Urben noted that the new administration in the United States may raise this issue.

She also expressed concern that the use of russian assets could jeopardize the euro's status as a reserve currency and threaten financial stability in Europe.

In addition, according to Urben, one of the consequences of the confiscation of russian assets is that it could facilitate the emergence of a non-European competitor that could compete with Euroclear.

“In the current situation, this is not a short-term threat,” she explained. - “But if there is a confiscation of assets, everything will be up in the air.

Source: Bloomberg