💼💣 Euroclear Warns Brussels: Using Frozen Russian Assets Could Backfire on EU Financial Credibility

Belgian financial giant Euroclear, the institution holding the bulk of frozen Russian assets in Europe, has issued a strong warning to European Commission President Ursula von der Leyen, according to the Financial Times.

In its letter, Euroclear cautions that redirecting profits or assets to support Ukraine could severely damage the European Union’s standing on global financial markets. Such a move, the company argues, would be interpreted by non-EU investors as nothing less than a de facto confiscation of foreign central bank reserves—a precedent that could undermine confidence in the EU’s legal stability and respect for the rule of law.

Beyond reputational risks, Euroclear points out that the plan could also trigger significant financial liabilities. Under current mechanisms, EU member states could be forced to make compensatory payments to cover losses resulting from the use of the frozen funds.

This internal warning surfaces just weeks after Belgium blocked the EU’s initiative in late October. Brussels insisted that the 27 member states must first agree on binding legal guarantees to fairly distribute risks before any such measure can be implemented.

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