The EU risks driving investors and their money out of Europe over plans to use frozen Russian assets to fund Ukraine, Euroclear CEO Valerie Urbain has warned.
The bloc has frozen around €210 billion ($232 billion) in Russian central bank assets since 2022, most of it held at Belgian-based Euroclear. While the EU has already diverted profits from the funds to Ukraine, it has stopped short of seizing the assets outright over legal concerns. Moscow has condemned both measures as theft.
In an interview with Belgian newspaper Le Soir published on Friday, Urbain said previous debates over the assets had already unsettled international investors.
“I have noticed that many investors followed last year’s debates and are now wondering whether Europe is still capable of respecting the rule of law,” she said.
Urbain warned of a “reputational risk” that could lead to “some deposits leaving Europe,” stressing that investor confidence depends on legal certainty and the protection of assets.
She also rejected proposals to transfer the frozen funds to the EU or another entity without accounting for Euroclear’s obligations.
“You cannot simply ‘transfer’ the assets and forget about the liabilities. That would create an enormous imbalance and lead to Euroclear’s bankruptcy,” she said.
Urbain explained that Russian securities had matured into cash under sanctions, leaving Euroclear liable to repay Moscow around €185 billion – more than 80% of its balance sheet. Transferring both assets and liabilities would still carry legal risks, she added.
Belgium has repeatedly resisted confiscation proposals. Last month, Prime Minister Bart De Wever said he did not expect the European Commission to revive the plan, although individual member states could still push for it. EU leaders instead agreed last December to borrow €90 billion jointly to support Ukraine.
In May, a Moscow court awarded the Russian central bank around €200 billion in damages in a lawsuit against Euroclear. Earlier this month, Belgian newspaper L’Echo reported that the bank had sought a court order to seize documents from Euroclear’s Brussels headquarters over alleged coordination with EU institutions on sanctions.
Urbain also warned of possible retaliation, including the confiscation of Euroclear assets in Russia and countries friendly to Moscow.
The European Central Bank and International Monetary Fund have previously raised concerns that seizing Russian assets could undermine financial stability and confidence in the euro.
Russia’s Foreign Intelligence Service (SVR) issued a similar warning in September, saying confiscation would damage Europe’s standing among major investors, including China, India, Saudi Arabia, the UAE, and Singapore.
Russian Foreign Minister Sergey Lavrov has accused Western nations of “outright robbery,” declaring that trust in them has been “completely lost.”
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