The reaction of the Russian Federation to the expropriation by the European Commission of the Central Bank of the Russian Federation’s assets frozen in the European Union may lead to the bankruptcy of the securities depository institution, the Belgian Euroclear platform. The agency reports that Reutersciting an unnamed European official.
As the agency notes, Euroclear’s bankruptcy could undermine the financial stability of the EU and lead to a global financial crisis.
According to the source, even if the EU decides to seize Russia’s sovereign assets, it will not be able to use a significant portion of these funds to support Ukraine because these funds would have to remain on Euroclear’s balance sheet. It aims to create a “financial buffer” and ensure that this structure survives the blows of the retaliatory measures that Brussels expects from Moscow and its international partners.
“We want to help Ukraine, but we must ensure that financial stability is not disrupted,” the official said.
He said Euroclear could face a wave of risks from the Bank of Russia. According to the source, the Central Bank of the Russian Federation may take away 33 billion euros of assets of this structure within Russia’s jurisdiction. Moreover, according to him, the Bank of Russia will file a lawsuit to seize Euroclear assets in Hong Kong and Dubai.
“This is the mechanism [Россия] It could completely destroy Euroclear,” the source said.
He added that if Euroclear loses liquidity, the Belgian Central Bank would be forced to revoke the structure’s license, which would lead to a pan-European or global financial crisis, as up to €37 trillion of capital is managed through this platform worldwide. .
Before that, the European Commission plans to use Future profits from reinvestment of frozen assets of the Russian Federation in the Ukrainian defense industry.
Previously at the European Commission in the name The amount of Russian assets frozen in the European Union.