Euroclear CEO informed of risks of confiscating frozen Russian assets
Valérie Urbain, the Chief Executive Officer of the Euroclear group (the Belgium-based clearinghouse), has pointed out that the confiscation of Russia’s frozen assets entails serious risks for the organisation itself and the financial stability of Europe, TASS reports
“We cannot be in the situation whereby the assets have been seized, but, in a couple of years, Russia comes and demands their return, while the securities assets would have been gone. If there is a confiscation of assets, everything should move, liabilities included,” Ms. Urbain said in an interview with Bloomberg.
The Euroclear CEO pointed out that using Russian assets frozen under sanctions to support Ukraine, as proposed by the EU, could undermine confidence in the current international financial system, as well as set a dangerous precedent. Some clients, including representatives of China, have already expressed concern about such initiatives.
The official emphasised that such actions could deal a blow to the Euro’s role as a reserve currency and lead to the creation of alternative financial platforms that will compete with Euroclear.
