Euroclear CEO flags global financial risks over frozen Russian assets
In an interview, Euroclear’s Valerie Urbain addressed the ongoing debate about billions of euros in Russian funds currently held by the company. She emphasized that these assets, which represent roughly 10-15% of Russia’s GDP, might be more effectively applied in peace negotiations rather than being tied up within a complex legal framework.
She also warned of a worst-case scenario: "Given Euroclear's central role in the financial system and its size, any threat to our survival would not only impact our company but could also affect the attractiveness of the European market and the stability of the global financial system." Urbain noted that the company could face bankruptcy if sanctions on Russia are lifted, Moscow demands the frozen funds back, and Europe has already committed the money elsewhere.
Urbain further highlighted potential risks for Belgian businesses, saying, "Such measures could target not just our clients but all Belgian assets in Russia. Moscow might take action against companies with no direct link to European sanctions but representing Belgian interests."
Headquartered in Brussels, Euroclear is a central player in the settlement and safekeeping of securities, making its operational stability critical not only for European markets but for the broader global financial ecosystem.
The European Union is considering freeing up €90 billion ($104 billion) to aid Ukraine, either by borrowing funds directly or by tapping Russian assets frozen under sanctions at Euroclear—a plan that Belgium has approached cautiously. Recent proposals by the European Commission include safeguards intended to shield member states, particularly Belgium, from potential fallout.
However, reports indicate that Belgian authorities remain concerned. Meanwhile, German leadership has adjusted its schedule to join a Brussels meeting aimed at discussing the potential release of Russian funds alongside EU officials and Belgian representatives.
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