The chief executive of Belgian financial institution Euroclear has warned that there is still no simple solution for using frozen Russian assets to support Ukraine. Valerie Urbain made the comments in an interview with Belgian newspaper Le Soir, published on Friday, as European countries continue to debate how the funds should be handled.
After Russia launched its full-scale invasion of Ukraine in February 2022, European Union countries immobilised around €210 billion in Russian central bank assets. Euroclear, which is based in Belgium, holds approximately €185 billion of those funds. This represents more than 80% of the company’s balance sheet and makes the institution central to discussions about the future of the money.
Some European governments want the frozen assets to be used to provide financial support to Ukraine. The idea has attracted attention because Kyiv needs substantial funding for its defence, public services and reconstruction. However, Belgium has opposed plans that could transfer the assets without resolving the legal and financial risks involved.
Urbain warned that transferring the assets while leaving the associated liabilities behind could make Euroclear financially vulnerable. She said any arrangement would require permanent guarantees from EU member states until the war ends or Euroclear’s obligation to repay the funds comes to an end.
The issue is complicated because the assets are frozen rather than formally transferred to another owner. European governments must consider the legal consequences of taking further action, as well as the possibility that Russia could challenge the move or seek repayment through legal channels.
Euroclear’s shareholders have already agreed to pass interest generated by the frozen assets to the European Commission for Ukraine. The amount transferred so far is close to €8 billion, according to the Reuters report.
Urbain also said Euroclear had not been targeted by a cyberattack, despite a recent wave of cyber incidents affecting several European countries, including Belgium.
The debate is likely to continue as EU governments search for ways to support Ukraine without creating serious legal or financial risks for the institutions holding the frozen funds.
