Euroclear Warns of Consequences if EU Confiscates Russian Central Bank Assets
Valerie Urbain, CEO of Euroclear Ltd., has cautioned against unintended ramifications if the European Union seizes frozen assets belonging to Russia's central bank.
In an interview with Bloomberg Television at the World Economic Forum in Davos, Urbain highlighted the potential risks associated with negotiations between Ukraine and Russia, including the use of Russia's frozen assets as a bargaining chip. She acknowledged that some officials advocate for confiscation.
"There could always be countermeasures from Russia which could further destabilize the financial markets," Urbain stated.
Euroclear, a Brussels-based clearing house, custodies a substantial portion of the Russian central bank assets frozen under EU and Group of Seven sanctions. Urbain emphasized the cruciality of transferring not only assets but also liabilities to protect Euroclear from future Russian claims should EU member states proceed with a confiscation.
"We have seen the case of the Iranian assets over 20 years later," Urbain said. "So I think this is not something which is theoretical."
In December, EU Economy Commissioner Valdis Dombrovskis suggested that the bloc explore options beyond freezing assets, possibly including seizure to compensate Ukraine for war damages. However, full confiscation remains contentious under international law.
Under a G-7 plan, Kyiv's allies have approved a mechanism to use profits from the sanctioned Russian assets to support a €50 billion loan package for Ukraine.