Euroclear calls E.U. plan to invest frozen Russian assets in risky securities ‘expropriation’

Euroclear chief executive Valérie Urbain told the Financial Times that European Union plans to raise additional revenue from frozen Russian assets by investing them in higher-risk securities would amount to “expropriation.”

Urbain also warned that such a move could prompt “Russian retaliation in all sorts of forms,” as well as damage Euroclear’s reputation.

The majority of Russian assets frozen after Moscow’s full-scale invasion of Ukraine are currently held at Euroclear.

The E.U. has reportedly been discussing the possibility of transferring these assets to a special E.U.-administered fund that would make higher-risk investments. The goal is to generate greater returns to support Ukraine.

Urbain said Euroclear opposes transferring the frozen assets into such a fund, arguing that doing so would amount to “expropriation.” She also noted that the depository would remain liable to the Russian Central Bank. “If you increase the revenues, you increase the risks. And so who is bearing that risk?” she said.

Following the start of Russia’s full-scale invasion in 2022, Western countries froze more than 260 billion euros in Russian central bank assets. The majority — about 190 billion euros — is held by the Belgium-based Euroclear.

E.U. member states have repeatedly debated whether to confiscate the assets outright but have expressed concerns that doing so could set a dangerous precedent and undermine the stability of the euro. They ultimately agreed to transfer only the investment income from the frozen assets to Ukraine. Russian authorities remain firmly opposed to both the use of the assets themselves and any profits generated from them.