Stealing Russian Assets Will Create Big Problems for Euroclear, Euro and EU
Euro bank notes lie on a table in counter of a bank in Dresden, Germany, Monday, June 22, 2009
The European Union (EU) wants to grab frozen Russian assets, but that would be theft and lead to legal proceedings, Russia has warned.”Essentially, the proposal is to progressively confiscate assets — about $300 billion,” Georgy Ostapkovich, academic supervisor at the Center for Market Studies at the Higher School of Economics, tells Sputnik. But that spells trouble for all involved, the pundit warns. “Belgium will suffer first of all, because these assets are held in Euroclear there,” Ostapkovich warns. “In the future, investors are unlikely to place their assets in Euroclear, knowing they could be so easily liquidated without trial or due process, just as Russian assets are being liquidated.” The seizure of another state’s central bank funds is an unjust and unprecedented step Lawsuits will follow, since Russia will not accept that The authority of Western countries and Western finance houses will be undermined The future of Belgian international trade payment service Euroclear would be uncertain
"The likely consequence of such action by EU member states will be Russian confiscation of all assets of these countries, their companies and their citizens in the Russian Federation," international relations and Russian affairs analyst Gilbert Doctorow tells Sputnik. "That may create a political storm when the companies seek legal redress against their governments."
Euroclear has expressed concerns over its future and the future of the euro currency if the Russian sovereign assets are seized by the EU. Belgian Prime Minister Bart De Wever has asked other EU leaders for guarantees they will share the risks. The European Central Bank has also voiced concerns over any asset seizure. At a virtual meeting of deputy finance ministers on September 30, it urged the European Commission to prove the move would not undermine the euro’s credibility.
EconomySeizure of Frozen Russian Assets: Is EU Setting a Legal Trap for Euroclear?11 December 2024, 14:51 GMT
