Valérie Urbain: Confiscation of Russian assets would threaten Euroclear with bankruptcy

Belgian depository Euroclear has once again stated that the confiscation of €185 billion in frozen Russian assets is unacceptable. The institution's head, Valérie Urbain, emphasised that the seizure of these funds could have serious financial consequences for the company, including leading to its bankruptcy.

Critical share of funds in balance sheet

In an interview with Le Soir, Urbain stated that the specified amount accounts for over 80% of Euroclear's total balance sheet. This is why any forced seizure of these funds would create extremely serious consequences for the depository.

Bankruptcy threat and legal risks

The head of Euroclear warned that the confiscation of assets would cause a huge imbalance in the company's financial structure, which effectively means its bankruptcy.

«Це створило б величезний дисбаланс і призвело б до банкрутства Euroclear. Чудо-рішення досі немає. Не слід також забувати, що триває судовий процес: Центральний банк Росії подав позов проти Euroclear. Це ще один "дамоклів меч". Тому не можна ігнорувати ці чинники, коли йдеться про таке рішення» (This would create a huge imbalance and lead to the bankruptcy of Euroclear. There is still no miracle solution. It should also not be forgotten that a court case is ongoing: the Central Bank of Russia has filed a lawsuit against Euroclear. This is another "sword of Damocles". Therefore, these factors cannot be ignored when it comes to such a decision), Urbain said.

The arguments mentioned came against the backdrop of growing difficulties in securing financing for Ukraine from European partners, which has once again activated the discussion on the possibility of using frozen Russian funds.