The Belgian depository Euroclear has warned the EU about the risks of the proposed "reparations loan" mechanism using frozen Russian assets – most of which are held in the aforementioned depository. This is reported by UNN with reference to Financial Times.
Details
In a letter to European Commission President Ursula von der Leyen and European Council President António Costa, Euroclear CEO Valerie Urbain wrote that providing assistance to Ukraine using Russian assets would be perceived outside the EU as "confiscation" of these funds.
As the Financial Times notes, this could scare investors in European government debt. This particularly applies to sovereign wealth funds and central banks – they may consider such actions a "violation of the rule of law."
Valerie Urbain also noted that this would lead to countermeasures from the Russian side. In addition, legal claims are not excluded, from which Euroclear must be protected, the letter states.
At the same time, the CEO of Euroclear expects that the "reparations loan" mechanism will provide for unconditional guarantees. They should cover the depository's risks "as long as legal liability exists."
Recall
Earlier, European Commission President Ursula von der Leyen announced her readiness to present a legal text for a reparations loan to Ukraine of 140 billion euros. This will happen after presenting EU countries with financing options for Ukraine in 2026-2027.