Euroclear: EU’s Reparations Proposal Is a Step Into Legal Unknown
Economy
Euroclear has stated that it cannot transfer frozen Russian assets to the European Union for free, warning that the EU’s proposed reparation-loan scheme lies outside existing legal frameworks and could jeopardize financial stability.
Euroclear CEO Valérie Urbain told Frankfurter Allgemeine Zeitung that all frozen Russian assets held by the depository are bound by legal obligations, including requirements from the Central Bank of Russia to compensate related expenses.
According to her, there is no legal mechanism that would allow Euroclear to “simply hand over” these funds to the EU, as they are legally considered the company’s own assets. Urbain stressed that the EU’s proposed reparation-loan mechanism is legally questionable and ventures into “completely uncharted territory.”
Reuters notes that Euroclear also warned that any EU decision to use frozen assets may threaten financial stability.
According to her, there is no legal mechanism that would allow Euroclear to “simply hand over” these funds to the EU, as they are legally considered the company’s own assets. Urbain stressed that the EU’s proposed reparation-loan mechanism is legally questionable and ventures into “completely uncharted territory.”
Reuters notes that Euroclear also warned that any EU decision to use frozen assets may threaten financial stability.
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