US EditionEuroclear Details 'Concerns' over EU's Frozen Russian Asset Plan
The European Commission aims to secure a €90 billion loan for Ukraine using frozen Russian assets worth €200 billion, despite legal and financial concerns from Belgium and Euroclear.
- On December 18, the European Commission is pressing to tap some 200 billion euros of frozen Russia's central bank assets to fund an initial 90 billion euros loan for Kyiv, a move European Commission president Ursula von der Leyen says can proceed with a weighted majority.
- Under the proposed mechanism, Euroclear would lend immobilised assets to the European Union, which would loan 90 billion euros to Kyiv, backed by member states and a three-tier defence.
- Euroclear cautions that the plan raises security and market-confidence risks, holding 16 billion euros of client assets in Russia and stepping up protection while 'monitoring the level of threats on a daily basis'.
- Belgium has proposed tapping 25 billion euros in Russian assets held outside Euroclear to spread risk, but Germany and other states pressing the European Commission’s plan could override Belgium’s objections, while von der Leyen says the loan can proceed with a weighted majority decision rule.
- Despite European Commission denials, critics say reassurances have not quelled unease about precedent, as Euroclear and experts question if member-state guarantees will hold amid long-term legal exposure.
31 Articles
31 Articles
Delegated administrator: - With the current proposal, international investors could perceive the repair loan as a confiscation
Daily Journal
Euroclear details 'concerns' over EU's frozen Russian asset plan
EU reassurances over its plan to use frozen Russian assets to help fund Ukraine have failed to quell worries about the untested scheme, the organisation holding most of the funds told AFP.
TRIBUNE. In a forum at the "World", a group of political figures calls for the use of frozen Russian public assets as a guarantee of a loan to Ukraine on behalf of the European Union.
The EU speaks of a "three-tiered defense," while Russia warns against using the funds: It is still unclear whether or how the EU will use the frozen Russian assets. The clearing house is concerned about this intention. Otherwise, the EU itself would have to take out a loan to support Ukraine.
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